I. EU GRANTS PROGRAMS
Foreword
The European Union has many different types of grants, delivered in different ways to various forms of recipients. Most EU funding is not paid directly by the European Commission to private beneficiaries, but via the national and regional authorities of the Member States. This is the case of payments under the structural policy financial instruments (the four Structural Funds: European Regional Development Fund, European Social Fund, European Agricultural Guidance and Guarantee Fund and Financial Instrument for Fisheries Guidance) which make up the great bulk of EU funding.
1.1. INSIDE THE EU
1.1.1. THE STRUCTURAL FUNDS AND THE COHESION FUND
Introduction
During 2000-2006, the European Union will grant its member states Structural and Cohesion Fund grants totaling US$187 billion (€213 billion) to undertake projects in a variety of sectors. Many of these projects will be performed by the private sector, in partnership with public authorities. U.S. firms may participate in these projects. "Structural Funds" grants are given to national, regional, and local authorities for, among others, infrastructure and industrial projects in such sectors as telecommunications, energy, tourism, environment, transport, health, education etc. Structural Funds are non-reimbursable grants given for projects intended to boost the economic development of underdeveloped regions throughout all of Europe. Most Structural Funds projects are assessed/approved by relevant local and regional authorities. The Cohesion Funds cover only two sectors, environment and transport; and the following countries: Spain, Portugal, Ireland, Greece, and all the new EU member states from Central and Eastern Europe, and is overseen more directly by the European Commission.
EU Enlargement
After the enlargement of the EU in May 2004, ten new EU Member States became recipient of EU Structural and Cohesion funds, like other current EU member States. A special package of EUR 24.4 billion has been earmarked for them under the Structural and Cohesion Funds for 2004-2006. One should bear in mind that all projects financed with EU Structural and Cohesion funds have to be co-financed by local government, the private sector and occasionally the European Investment Bank: this requirement may slow down the capacity of new Member States' administrations to complement EU funding and therefore the project approval process.
U.S. firm eligibility
Eligibility to receive funding for projects is restricted to Europe-based firms. However, U.S. firms may participate in projects receiving EU funding via two methods.
- U.S. subsidiaries located in any of the 25 European Union countries, and legally registered, are considered "European firms", and, as such, are eligible and
- U.S. firms without European subsidiaries may partner with a European firm to be eligible for a particular project. An EU-based local partner is required to ensure access to funding.
What types of projects will be funded?
Projects most likely to receive money are those that contribute to EU priority objectives: development and structural adjustment of underdeveloped regions, economic and social conversion of areas facing structural difficulties, and adaptation and modernization of policies and systems of education, training and employment. Most grant assistance in 2000-06 will go to such regions in, by order of importance, Spain, (former Eastern) Germany, Greece, Portugal, Ireland, (southern) Italy, Finland, Sweden, the UK, and all the new EU meber states.
How can I locate opportunities relevant to my firm?
There is NO LIST of projects that companies can consult. Instead, interested firms need to research governments' funds spending priorities to locate opportunities. The first step is to understand where funding will go within the EU and what the recipient's general priorities are for using that funding.
The INFOREGIO website, is administered by the European Commission (Regional Policy department) and provides both general and specific information on EU structural funding.
U.S. firms should search this site to locate programs relevant to their company. The website allows searches for programs by the entire EU, by country, by region, and by sector. Programs are listed at: www.europa.eu.int
Who gets the grants?
Most funding granted by the EU is not paid by the European Commission directly to a company, but through the national and regional authorities of each Member States. That holds for most grants awarded under structural policy financial instruments: European Regional Development Fund, European Social Fund, European Agricultural Guidance and Guarantee Fund and the Financial Instrument for Fisheries Guidance), which are the four Structural Funds.
Project tendering
Once these programs have been adopted by regional authorities, they are turned into a number of specific projects that will be tendered by government authorities according to European public procurement contracting legislation. Tenders are published in the Official Journal of the European Union, the electronic version of which is called the TED (Tenders Electronic Daily). Tenders for these EU-funded programs are published in the ted.publications.eu.int/official
1.1.2. OTHER TYPES OF GRANTS
The European Union has developed other grants, that are not designed to boost development of a particular region, like the Structural and Cohesion Funds, but to emphasize actions in particular sectors: research & development, education, languages, justice, consumers, etc.
The European Commission has developed website containing fact sheets about each type of grants and the department that manages those grants. Those grant programs each have their own rule regarding eligibility criteria and application processes, which differ according to the department that disburses the money. Go to "Fast jump to Grants and Loans", then to Thematic Index and Acronyms:europa.eu.int/grants
1.2. OUTSIDE THE EU
1.2.1. THE EUROPE-AID COOPERATION OFFICE
The European Commission has a well-developed website covering all programs of external aid to third countries, with lists of programs and procurement procedures, as well as a list of tenders covering the following grant programs: PHARE, ISPA, SAPARD, TACIS, CARDS (formerly OBNOVA projects), ALA, MEDA, FED, EAfR . Below, you will find details about these programs covered in the site of the Europe-Aid Cooperation Office, which manages most of these programs.
The general website of the Europe-Aid Cooperation Office is: europa.eu.int
The tender search tool, which is extremely easy to use, is located on: http://europa.eu.int/comm/europeaid/cgi/frame12.pl
1.2.2. ACCESSION COUNTRIES IN CENTRAL & EASTERN EUROPE
The European Commission manages a number of aid programs to third countries, but puts special emphasis on the countries that will soon become new members of the Union: Bulgaria, Romania and Croatia. Three funding programs cover those three countries: PHARE, ISPA and SAPARD. With the accession of the ten countries from Central and Eastern Europe, those 3 programs will only continue to exist for Bulgaria, Romania and Croatia until their accession to the EU. No new projects will be approved for the 10 new member states under these 3 programs, although tenders for Phare, ISPA and SAPARD projects may continue to be issued during the next 2 years for the ten new EU member states due to the time span between EU budget allocation and the slow approval of projects by grant recipient countries.
PHARE
This programs prepares these countries for future adhesion: half of the funding will be devoted to prepare accession countries for the implementation of future Structural Funds by putting in place the necessary administrative and budgetary structures, the other half being devoted to multi-beneficiary programs, tacking issues such as democracy, partnerships, quality assurance, city twinning, etc. PHARE is managed by the Enlargement department of the European Commission.
The general address of the PHARE program:
http://www.europa.eu.int/comm/enlargement/pas/phare/index.htm
ISPA
The Instrument for Structural Pre-Accession (ISPA) is also destined at accession countries, and covers only environment and transport infrastructure networks projects. Currently, its budget is €1 040 million per year for the 2000-2006 period. In December 2004, a new budget will be announced for Bulgaria and Romania. ISPA is managed by the Department of Regional Policies of the European Commission, and this website offers good information on the types of projects it covers, including a list of ongoing projects.
The ISPA program address is:
http://www.europa.eu.int/comm/regional_policy/funds/ispa/enlarge_en.htm
SAPARD
SAPARD is the funding program covering rural development and agriculture projects: http://europa.eu.int/comm/agriculture/external/enlarge/back/index_en.htm
1.2.3. OTHER THIRD COUNTRIES
The European Union manages a large number of aid programs throughout the world, grouped by regions. Each region has different sets of programs, with differing rules for the eligibility of participants and procurement processes.
MEDA: covers the Mediterranean region: Morocco, Algeria, Tunisia (Maghreb); Egypt, Israel, Jordan, the Palestinian Authority, Lebanon, Syria (Mashrak); Libya currently has observer status at certain meetings; three accession countries are also covered: Turkey, Cyprus and Malta.Click Here.
ALA: There are a variety of programs covering Asia & Latin America: Click Here.
TACIS: covers the Newly Independent States and Mongolia: Click Here.
CARDS: this program covers countries of Southeast Europe: Albania, Croatia, Bosnia & Herzegovina, the Former Republic of Yugoslavia, the Former Yugoslav Republic of Macedonia. Click Here.
EAfR: The European Agency for Reconstruction, established in Serbia and Thessaloniki, covers Serbia, Kosovo and Montenegro: Click Here.
Tenders related to all those programs appear on the website of the Europe-Aid Cooperation Office mentioned above.