Because its economy is growing substantially faster than expected, Estonia will get 1 percent or €35.4 million less out of the European Union Cohesion Fund for the 2014-2020 period than previously allocated.
So far Estonia has received €4.42 billion out of the EU’s structural funds. Since its economy is growing faster than expected, the volume allocated until 2020 will now be reduced by 1 percent, or €35.4 million, the government said on Thursday.
According to a decision made in 2016 at the European level, this money will instead be directed to regions that need it more. The government also confirmed the decision in an amendment to the partnership agreement.
Based on prior information, the funding allocated to Estonia from the EU funds within the framework of the partnership agreement is approximately €4.42 billion. During the ongoing budget period, over €630 million of EU money have been allocated to the Estonian economy.
The European Commission periodically reviews the distribution of EU structural assets, or so-called “EU money”. The aim of the periodic review is to allocate the money as effectively as possible in order to help countries in need of support catch up with wealthier members of the union.
The European Commission in June 2014 approved partnership agreements with Estonia, Latvia, and Lithuania that stipulate the strategy for the optimum use of European structural and investment funds to support the regions and people in those countries.
The EU regulation deals with the whole 2014-2020 allocation period required that the European Commission reviews the 2012 forecasts of the member states’ GDP, GNP, and employment indicators in 2016 as well as the actual levels of the indicators for 2013-2015.
If a member state has done better than expected in terms of those indicators, the volume of money to be allocated to that state from structural assets is reduced.
Editor: Dario Cavegn