Cohesion Fund

Under the terms of Article 130d of the EC Treaty, the Cohesion Fund was set up in 1993 to provide financial help for projects in the fields of environment and transport infrastructure. In order to speed up economic, social and territorial convergence, the European Union set up a Cohesion Fund in 1994. The purpose of the Cohesion Fund is to grant financing to environment and transport infrastructure projects. The support granted is, however, subject to certain conditions. If the public deficit of a beneficiary Member State exceeds 3% of national GDP no new project will be approved until the deficit has been brought under control. The scope of the Cohesion Fund is extended to include renewable energies, inter-modal transport, and urban and public transport.