Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund

CHAPTER I

COMMON PROVISIONS

Article 1

Subject matter

Article 2

Tasks of the ERDF and the Cohesion Fund

Article 3

Specific objectives for the ERDF and the Cohesion Fund

In accordance with the policy objectives set out in Article 5(1) of Regulation (EU) 2021/1060, the ERDF shall support the following specific objectives:

(a) a more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity (PO 1) by: (i) developing and enhancing research and innovation capacities and the uptake of advanced technologies; (ii) reaping the benefits of digitisation for citizens, companies, research organisations and public authorities; (iii) enhancing sustainable growth and competitiveness of SMEs and job creation in SMEs, including by productive investments; (iv) developing skills for smart specialisation, industrial transition and entrepreneurship; (v) enhancing digital connectivity; (vi) supporting investments contributing to the objectives of the Strategic Technologies for Europe Platform (STEP) referred to in Article 2 of Regulation (EU) 2024/795 of the European Parliament and of the Council (¹); (vii) enhancing industrial capacities to foster defence capabilities, prioritising capabilities of a dual-use nature;

(b) a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility (PO 2) by: (i) promoting energy efficiency and reducing greenhouse gas emissions; (ii) promoting renewable energy in accordance with Directive (EU) 2018/2001, including the sustainability criteria set out therein; (iii) developing smart energy systems, grids and storage outside the Trans-European Energy Network (TEN-E); (iv) promoting climate change adaptation and disaster risk prevention and resilience, taking into account eco-system based approaches; (v) promoting secure access to water, sustainable water management, including integrated water management, and water resilience; (vi) promoting the transition to a circular and resource efficient economy; (vii) enhancing protection and preservation of nature, biodiversity and green infrastructure, including in urban areas, and reducing all forms of pollution; (viii) promoting sustainable multimodal urban mobility, as part of transition to a net zero carbon economy; (ix) supporting investments contributing to the STEP objective referred to in Article 2(1), point (a)(ii), of Regulation (EU) 2024/795; (x) supporting investments aimed at reconstruction in response to a natural disaster that occurs between 1 January 2024 and 31 December 2025; (xi) promoting access to affordable and sustainable housing; (xii) promoting energy interconnectors and related transmission, distribution, storage and supporting infrastructure, as well as the protection of critical energy infrastructure and the deployment of recharging infrastructure;

(c) a more connected Europe by enhancing mobility (PO 3) by: (i) developing a climate resilient, intelligent, secure, sustainable and intermodal TEN-T; (ii) developing and enhancing sustainable, climate resilient, intelligent and intermodal national, regional and local mobility, including improved access to TEN-T and cross-border mobility; (iii) developing resilient defence infrastructure, prioritising that of a dual-use nature, including to foster military mobility in the Union, as well as enhancing civil preparedness;

(d) a more social and inclusive Europe implementing the European Pillar of Social Rights (PO 4) by: (i) enhancing the effectiveness and inclusiveness of labour markets and access to quality employment through developing social infrastructure and promoting social economy; (ii) improving equal access to inclusive and quality services in education, training and lifelong learning through developing accessible infrastructure, including by fostering resilience for distance and on-line education and training; (iii) promoting the socioeconomic inclusion of marginalised communities, low income households and disadvantaged groups, including people with special needs, through integrated actions, including housing and social services; (iv) promoting the socio-economic integration of third country nationals, including migrants through integrated actions, including housing and social services; (v) ensuring equal access to health care and fostering resilience of health systems, including primary care, and promoting the transition from institutional to family-based and community-based care; (vi) enhancing the role of culture and sustainable tourism in economic development, social inclusion and social innovation; (vii) promoting access to affordable and sustainable housing;

(e) a Europe closer to citizens by fostering the sustainable and integrated development of all types of territories and local initiatives (PO 5) by: (i) fostering the integrated and inclusive social, economic and environmental development, culture, natural heritage, sustainable tourism and security in urban areas; (ii) fostering the integrated and inclusive social, economic and environmental local development, culture, natural heritage, sustainable tourism and security in areas other than urban areas; (iii) fostering integrated territorial development, through access to affordable and sustainable housing in all types of territories; (iv) ensuring civil preparedness in all types of territories. Support under PO5 shall be provided through territorial and local development strategies, through the forms set out in points (a), (b) and (c) of Article 28 of Regulation (EU) 2021/1060.

Operations supported under the specific objective set out in the first subparagraph, point (c)(iii), fostering military mobility shall primarily focus, where relevant, on one or more of the four Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on 18 March 2025. Supported operations which are part of those Corridors shall comply with the infrastructure requirements laid down in implementing acts based on Article 12(2) of Regulation (EU) 2021/1153 of the European Parliament and of the Council (²).

Where a programme amendment is submitted to the Commission by 31 December 2025, the Commission shall pay 20 % of the allocation to such dedicated priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 or in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059 of the European Parliament and of the Council (³). Where such dedicated priorities have been included in a programme amendment submitted to the Commission by 31 March 2025, the Commission shall pay exceptional one-off pre-financing of 30 % of the allocation to those priorities as set out in the decision approving the programme amendment. The exceptional one-off pre-financing shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment.

In accordance with Article 90(5) of Regulation (EU) 2021/1060 and Article 51(5) of Regulation (EU) 2021/1059, the amount paid as exceptional pre-financing shall be cleared from the Commission accounts no later than with the final accounting year.

In accordance with Article 90(6) of Regulation (EU) 2021/1060, any interest generated by the exceptional pre-financing shall be used for the programme concerned in the same way as the ERDF and shall be included in the accounts for the final accounting year.

In accordance with Article 97(1) of Regulation (EU) 2021/1060, the exceptional pre-financing shall not be suspended.

In accordance with Article 105(1) of Regulation (EU) 2021/1060, the pre-financing to be taken into account for the purposes of calculating amounts to be de-committed shall include the exceptional pre-financing paid.

By way of derogation from Article 112 of Regulation (EU) 2021/1060, the maximum co-financing rates for dedicated priorities established to support the STEP objectives shall be 100 %.

Where the natural disaster resulting in direct damage below the thresholds set in Article 2(2) and (3) of Regulation (EC) No 2012/2002 occurs after 24 December 2024, it shall be understood to be a natural disaster provided that it is recognised as such by a competent public authority of the relevant Member State within 12 weeks of the date of the first occurrence of damage as a consequence of that natural disaster.

The resources allocated under the specific objective referred to in paragraph 1, point (b)(x), of this Article shall be programmed under dedicated priorities of programmes under the Investment for jobs and growth goal corresponding to the respective policy objective. For the entire programming period, the resources allocated under that specific objective and the dedicated priorities established pursuant to Article 12b(2) of Regulation (EU) 2021/1057 shall be limited to a maximum of 10 % of the initial total national allocation of the ESF+ and the ERDF. The programme amendment concerned shall be submitted within six months of the date on which the damage as a consequence of the natural disaster first occurred or, where the natural disaster occurred before 24 December 2024, by 25 June 2025.

The Commission shall pay 25 % of the allocation to the priorities referred to in the third subparagraph of this paragraph in accordance with the decision approving the programme amendment as exceptional pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060. That exceptional pre-financing shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment, subject to the availability of funds. Where the allocation to those priorities is subsequently increased, an additional pre-financing amount shall be paid, corresponding to 25 % of the increase.

In accordance with Article 90(5), first subparagraph, of Regulation (EU) 2021/1060, the amount paid as exceptional pre-financing shall be cleared from the Commission accounts no later than with the final accounting year.

In accordance with Article 90(6) of Regulation (EU) 2021/1060, any interest generated by the exceptional pre-financing shall be used for the programme concerned in the same way as the ERDF or the Cohesion Fund and shall be included in the accounts for the final accounting year.

In accordance with Article 97(1) of Regulation (EU) 2021/1060, the exceptional pre-financing shall not be suspended.

In accordance with Article 105(1) of Regulation (EU) 2021/1060, the pre-financing to be taken into account for the purposes of calculating amounts to be de-committed shall include the exceptional pre-financing paid.

By way of derogation from Article 112(3) of Regulation (EU) 2021/1060, the maximum co-financing rate for a dedicated priority established to support the specific objective referred to in paragraph 1, point (b)(x), of this Article shall be 95 %.

Member States shall ensure that support from another Union instrument, from a national instrument or from a private insurance scheme received for operations selected under the specific objective referred to in paragraph 1, point (b)(x), of this Article is deducted from the expenditure included in the payment application submitted to the Commission.

By way of derogation from Article 63(6) of Regulation (EU) 2021/1060, the managing authority concerned may select for support, under a dedicated priority, operations that have been physically completed or fully implemented before the submission of the application for funding to the managing authority, provided that the operation provides a response to a natural disaster which occurs between 1 January 2024 and 31 December 2025.

Where a programme amendment is submitted to the Commission by 31 December 2025, the Commission shall pay 20 % of the allocation to such dedicated priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 and in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059. The exceptional one-off pre-financing shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment.

The amount paid as exceptional one-off pre-financing shall, pursuant to Article 90(5) of Regulation (EU) 2021/1060, be cleared from the Commission accounts no later than with the final accounting year.

Any interest generated by such exceptional one-off pre-financing shall, pursuant to Article 90(6) of Regulation (EU) 2021/1060, be used for the programme concerned in the same way as the ERDF or the Cohesion Fund and be included in the accounts for the final accounting year.

Pursuant to Article 97(1) of Regulation (EU) 2021/1060, such exceptional one-off pre-financing shall not be suspended.

The pre-financing to be taken into account for the purpose of calculating amounts to be decommitted shall, pursuant to Article 105(1) of Regulation (EU) 2021/1060, include any exceptional one-off pre-financing paid.

By way of derogation from Article 112(3) and (4) of Regulation (EU) 2021/1060, the maximum co-financing rate for dedicated priorities established to support the specific objectives referred to in paragraph 1, first subparagraph, point (a)(vii), points (b)(v), (xi) and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), of this Article shall be increased by 10 percentage points above the co-financing rate applicable, not exceeding 100 %.

Within the specific objectives set out in paragraph 1, the ERDF or the Cohesion Fund, as appropriate, may also support activities under the Investment for jobs and growth goal, where they:

(a) improve the capacity of programme authorities;

(b) improve the capacity of sectoral or territorial actors responsible for carrying out activities relevant to the implementation of the ERDF and the Cohesion Fund, provided that it contributes to the objectives of the programme; or

(c) enhance cooperation with partners both within and outside a given Member State.

Cooperation referred to in point (c) shall include cooperation with partners from cross-border regions, from non-contiguous regions or from regions located in the territory covered by a European Grouping of Territorial Cooperation, a macro-regional or sea-basin strategy or a combination thereof.

Beneficiaries shall not be subject to the requirements set out in Article 50(1), points (c), (d) and (e), of Regulation (EU) 2021/1060 for operations linked to the specific objectives referred to in paragraph 1, points (a)(vii) and (c)(iii), of this Article where the public display of information on the support or the organisation of a communication event or activity is not required for reasons of security or public order pursuant to Article 69(5) of Regulation (EU) 2021/1060.

The Commission shall inform the European Parliament at least once a year of the number of operations that are the subject of the derogation provided for in the second subparagraph, as well as their total cost, in an aggregated manner, with due regard to confidentiality requirements.

Article 4

Thematic concentration of ERDF support

For the purposes of a thematic concentration at national level, Member States shall be classified, in terms of their gross national income ratio, as follows:

(a) those with a gross national income ratio equal to or above 100 % of the EU average (‘group 1’);

(b) those with a gross national income ratio equal to or above 75 % and below 100 % of the EU average (‘group 2’);

(c) those with a gross national income ratio below 75 % of the EU average (‘group 3’).

For the purposes of this Article, the gross national income ratio means the ratio between the gross national income per capita of a Member State, measured in purchasing power standards and calculated on the basis of Union figures for the period from 2015 to 2017, and the average gross national income per capita in purchasing power standards of the 27 Member States for that same reference period.

With regard to programmes under the Investment for jobs and growth goal for the outermost regions, they shall be classified as falling within group 3.

With regard to programmes under the Investment for jobs and growth goal for island Member States which receive support from the Cohesion Fund, they shall be classified as falling within group 3.

For the purposes of a thematic concentration at the level of category of region, regions shall be classified by categories of region in accordance with Article 108(2) of Regulation (EU) 2021/1060, as:

(a) more developed regions;

(b) transition regions;

(c) less developed regions.

Member States shall comply at national level with the following thematic concentration requirements:

(a) Member States of group 1 or more developed regions shall allocate at least 85 % of their ERDF resources referred to in paragraph 1 to PO 1 and PO 2, and at least 30 % to PO 2;

(b) Member States of group 2 or transition regions shall allocate at least 40 % of their ERDF resources referred to in paragraph 1 to PO 1, and at least 30 % to PO 2;

(c) Member States of group 3 or less developed regions shall allocate at least 25 % of their ERDF resources referred to in paragraph 1 to PO 1, and at least 30 % to PO 2.

Where a Member State decides to comply with thematic concentration requirements at the level of category of regions, the thresholds set out in the first subparagraph of this paragraph shall apply to the ERDF resources referred to in paragraph 1 aggregated together for all regions falling in the respective category of region.

If a Member State decides to comply with thematic concentration at the level of category of regions, the Cohesion Fund resources that are taken into account for thematic concentration requirements in accordance with the first subparagraph shall be allocated pro rata to the different categories of regions based on their relative share of the total population of the Member State concerned.

Member States shall set out in their Partnership Agreement referred to in Article 10 of Regulation (EU) 2021/1060 whether the Cohesion Fund resources will be taken into account for thematic concentration requirements for PO 2.

By way of derogation from paragraph 6, 40 % of such resources shall be taken into account when calculating compliance with the thematic concentration requirements for PO1 set out in paragraph 6.