What are European Structural Funds?

The European Union gives financial aid to less developed regions of Europe in the form of European Structural Funds. European Funds are targeted on specific problems or areas of economic need and since 1989, these Funds have made a difference in Western Scotland.

The European Regional Development Fund (ERDF)

ERDF provides investment assistance: to create or maintain jobs in the region
· for people to start or to grow businesses
· to develop sites and premises for businesses
· for tourism facilities to attract visitors from outside the region.
· to help link businesses to research
· improves facilities in colleges and other places where people learn.
· ERDF can provide up to 50% of the cost of a project.

The European Social Fund (ESF)

ESF supports training and learning for people working in the region and people looking for jobs. In particular, the Fund is intended to help:
· people who are already in the workforce as well as those who are unemployed
· young job seekers and
· people excluded from the labour market.

It is used to help people cope with changes in the economy and to ensure that businesses can find employees with the right skills for the future. ESF can provide up to 45% of the cost of a project.

How are European Funds Managed?

European Funds are seen as the last piece of the financial jigsaw for a project. That means European Funds are used to part-finance projects that could not go ahead without financial support from Europe. Projects must have all other sources of funding in place before applying for support.

Since 1996 European Funds in Scotland have been managed through a number of Programme Management Executives (PMEs), like SEP Ltd. In Western Scotland, SEP Ltd has recently completed managing the 2000-2006 Objective 2 Programme, the URBAN II Community Initiative and a Scotland-wide Innovative Actions Programme. Organisations in the Highlands & Islands, the East and South of Scotland, as well as a Scottish ESF Objective 3 Partnership have operated in a similar way.

The 2007-2013 Lowlands and Uplands Scotland European Structural Funds Programme is administered by East of Scotland European Partnership Ltd. For full details of the funds available for period 2007-2013 please go to http://www.scotland.gov.uk/Topics/Business-Industry/support/17404