EU Budget Germany 2014-2020 update November 2014

GERMANYUPDATED | 11| 2014

2014 | 2020EU BUDGETS

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Global Europe

Administration

Compensation

Security & Citizenship

€ 199.828

€ 959.988in current prices: € 1.082.555

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The five European Structural and Investment Funds;

| The European Regional Development Fund

| The European Social Fund

| The Cohesion Fund

| The European Maritime and Fisheries Fund

| The European Agricultural Fund for Rural Development

ESI FUNDSTHE 5

| EU Member States are required to draw up and implement

strategic plans with investment priorities covering the five ESI

Funds.

| These Partnership Agreements (PAs) are negotiated between the

European Commission and national authorities, following their

consultation of various levels of governance, representatives from

interest groups, civil society and local

and regional representatives.

AGREEMENTSPARTNERSHIP

Under the regional guidelines, areas which have a GDP per capital

below 75% of the EU average are eligible in priority for regional

investment aid, as the main purpose of regional aid is to foster the

development of the less advantaged regions of Europe.

| While for the period 2007-13, almost the entire territory of the German

new Länder (following the reunification of Germany) fell within this

category, none of the German regions qualify for this status for the

2014-2020 period.

AID PERCENTAGESMAXIMUM

| In order to ensure a smooth transition, these areas will continue to be

eligible until 2020 and the maximum aid intensities applicable in these

regions will be reduced by the end of 2017.

| Under the guidelines, other regions can also be made eligible provided

that they complywith certain criteria, in order to allow Member States to

tackle their own regional disparities.

| As these regions are less disadvantaged from a European perspective

than areas with a GDP per capita below 75% of the EU average, both the

geographical scope and the aid intensity are strictly limited.

AID PERCENTAGESMAXIMUM

The regional map specifies what areas have been made eligible by

Germany.

| The maximum aid intensities for regional investment aid in the German

assisted regions have slightly decreased as compared to the previous aid

map (between 5 and 15 percentage points, depending on the region).

AID PERCENTAGESMAXIMUM

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STotal number

of OP s submitted

per country

Countries have

their OP s

adopted:21 OP >Denmark

1 OP >Lithuania

| Partnership Agreement Adopted 22 – 05 – 2014

| 15 Operational Programme’s and 1 Multi-Fund Programme

submitted

| Adoption of OP’s by European commission in Q4 2014

| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s

OPs should be submitted by Member States within 3 months following the

submission of the Partnership Agreement.

The Commission makes observations within 3 months and adopts the OP

no later than 6 months from the date of its submission.

PLANNING

In order to improve regional competitiveness and break down

regional disparities, measures are being taken under the ERDF that

essentially focus on the following thematic objectives:

| 1: ‘Strengthening research, technological development and innovation’

| 3: ‘Enhancing the competitiveness of SMEs’

| 3: ‘Supporting the shift towards a low-carbon economy in all sectors’

PRIORITIESFUNDING

Around 83% of ERDF funding (not counting expenditure on

technical assistance) will be used to support these three objectives.

Of the remaining 17%+, a good third will be spend on each of Objectives

6 ‘Preserving and protecting the environment and promoting resource

efficiency’ and

9 ‘Promoting social inclusion, combating poverty and any discrimination’.

Under Objectives 6 and 9, together with Thematic Objective 5, attempts

are above all made to promote the sustainable development of regions and

cities.

PRIORITIESFUNDING

To promote human resources and for the benefit of social cohesion,

the funding awards from the ESF in the 2014-2020 funding period

will focus on the following thematic objectives:

| 8: ‘Promoting sustainable and quality employment and supporting labour

mobility’

| 9: ‘Promoting social inclusion, combating poverty and any discrimination’

| 10: ‘Investing in education, training and vocational training for skills and

lifelong learning’.

PRIORITIESFUNDING

In order to achieve the common objectives, all ESF funding (excluding

technical aid) is to be put towards these three thematic objectives.

The analyses of the needs for action and funding turn out to some extent

to be very varied between eastern and western Germany, but also between

individual Länder in the eastern and western parts of the country.

At the national level for Germany, the preliminary figures indicate that there

is close to a one-third weighting:

| 33.3% for objective 8

| 33.1% for objective 9

| 33.6% for objective 10.

PRIORITIESFUNDING

For Germany as a whole, the ESF-supported Investitionen in die Köpfe

[Investment in minds] will make visible contributions to smart, sustainable

and inclusive growth and to adaptation to demographic change.

In particular, results are to be expected from the mobilization of additional

economic potential, with a key role to be played by hitherto unutilized

economic potential among women.

The development of human resources is supported on the supply side and

the demand side in order to help secure the skills base and improve the

situation of the disadvantaged.

PRIORITIESFUNDING

Improving the sustainable management of natural resources and climate

protection policy, plus economic and social development in rural areas,

represent the core concerns of funding awards under the EAFRD. With this

in mind, the following thematic objectives – among other objectives – are

relevant:

| 5: ‘Promoting climate change adaptation, risk prevention & management’

| 6: ‘Preserving & protecting the environment and promoting resource

efficiency’

| 9: ‘Promoting social inclusion, combating poverty and any discrimination’.

PRIORITIESFUNDING

When it comes to thematic concentration, around two thirds of the total

expenditure allocated to the EAFRD (excluding technical assistance) jointly

covers objectives 5, 6 and 9.

A further 19% is allocated to thematic objective 3 in order to increase the

competitiveness of SMEs.

PRIORITIESFUNDING

On 1 January 2014 the new 2014-2020 funding period began. Over this funding period, funding amounting to EUR 19.2 billion from the ERDF and the ESF and EUR 8.3 billion from the EAFRD will be deployed in Germany to meet the European Union’s policy aims.

| Subsidies under the ERDF and the ESF vary region by region based on economic conditions. Higher levels of funding in Germany are by and large the preserve of the eastern Länder.

| The EAFRD supports rural areas and the development of agriculture and forestry, while the EMFF supports the fisheries sector.

ALLOCATIONSFINANCIAL

In Germany the implementation of the policies is by and large performed by the Länder as part of multiannual funding programmes. A total of 48 funding programmes are being put in place.

| For the ERDF and the ESF, there are 15 operational programmes in the Länder and one multi-fund programme – a joint ERDF/ESF programmefor Lower Saxony. There is also one national programme under the ESF.

| For the EAFRD, there are 14 development programmes for rural areas. The EMFF consists of a single national programme.

ARCHITECTUREPROGRAMME

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FUNDING PRIORITIES

THEMATIC OBJECTIVE& BY FUNDALLOCATION BROKEN DOWN BY

BUDGET BREAKDOWNREGIONAL