EU funds for roads - CEDR
EU funds for roads - CEDR
EU funds for roads - CEDR
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This report is:<br />
FOR INFORMATION<br />
Executive summary<br />
The European Union (<strong>EU</strong>) allocates the major part of its total budget <strong>for</strong> the development of road<br />
networks and other relevant interventions to its member states. In the period 2000–2006, the<br />
total amount allocated to road-related projects was €35 billion; 77% of this amount was allocated<br />
to its member states (approx. €27 billion) and 23% (approx. €8 billion) to other non-<strong>EU</strong> countries<br />
worldwide. Similarly, in the period 2007–2013, about €40 billion (87% of its total budget of €46<br />
billion <strong>for</strong> road-related projects) is to be spent in <strong>EU</strong> member states, leaving €6 billion to be<br />
spent in third countries 1 .<br />
In general, <strong>EU</strong> <strong>funds</strong> that are earmarked <strong>for</strong> the achievement of specific <strong>EU</strong> targets<br />
(outputs/results/impacts) based on specific <strong>EU</strong> strategies are allocated, used, and managed<br />
2<br />
through specific <strong>funds</strong> that serve these specific <strong>EU</strong> strategic goals . These <strong>funds</strong> are subject to<br />
very strict rules that are determined by specific European Commission (EC) legal documents<br />
(Regulations, Directives, Communications, etc.). There<strong>for</strong>e, projects only receive financing from<br />
a fund if the project helps reach the specific objectives of the fund and covers all the eligibility<br />
requirements set by the fund’s legal framework.<br />
There are many <strong>EU</strong> <strong>funds</strong> that provide financing <strong>for</strong> road projects. A number of them are<br />
dedicated to financing projects in <strong>EU</strong> member states only; others are dedicated to financing<br />
projects in pre-accession countries or countries that have special relations with the <strong>EU</strong> or have<br />
concluded special agreements with the <strong>EU</strong> only.<br />
For some <strong>funds</strong>, the project type (i.e. design studies, new construction, maintenance, supporting<br />
services etc.) is a key eligibility issue. For example, routine road maintenance projects are not<br />
eligible <strong>for</strong> <strong>EU</strong> funding within the <strong>EU</strong>; these projects must be financed solely by national or<br />
private <strong>funds</strong> 3 .<br />
The allocation of <strong>funds</strong> from the <strong>EU</strong> budget to <strong>EU</strong> <strong>funds</strong> (and hence to the eligible countries and<br />
ultimately to the projects) is done through multi-annual engagements on the basis of a set of<br />
criteria and relevant negotiations among the <strong>EU</strong> member states (MS). Logically, the greatest<br />
part of these <strong>funds</strong> is made available to the regions/countries that have the greatest need in<br />
terms of the strategic goals that have been agreed and must be reached.<br />
1 Most of the in<strong>for</strong>mation and data included in this document is taken from the pages of <strong>EU</strong> websites.<br />
2 For example, the <strong>EU</strong>’s Cohesion Fund serves the strategic goal of achieving greater cohesion between <strong>EU</strong> member<br />
states by assisting those countries that are less developed than others.<br />
3 Obviously this does not contribute to the promotion of the life-cycle cost management of road projects.<br />
<strong>EU</strong> <strong>funds</strong> <strong>for</strong> <strong>roads</strong>