Cohesion policy – the glue that holds the EU together

How should EU money be best used for Norrbotten's development? The money in question comes from what is called the EU's cohesion policy. But what is it really?

Cohesion policy is the EU's most important tool for creating growth and jobs. The policy is behind hundreds of thousands of projects in Europe that are run with money from various funds.

Every year hundreds of millions of kronor flow from the EU to Norrbotten. This is money that makes a difference for Norrbotten residents, universities, companies, municipalities and associations. It is money that can be used for adult education, bridges, ports, railways, learning centers, research projects, greenhouses powered by waste heat and broadband in rural areas.

Cohesion policy is sometimes described as the glue that holds the EU together. It aims to reduce differences in development between the EU's regions and combat inequality between people.

But cohesion policy also has another important function: to make Europe stronger in competition with other parts of the world.

You could say that the EU is a chain where each region is a link. If each link is strengthened, the whole chain becomes stronger. All regions should contribute in their own way to making the EU stronger in research, business development, skills development, new technology and so on.

Each region therefore tries to capture its strengths, its developable advantages, in a so-called Smart Specialization Strategy. For Region Norrbotten, the strengths are the space industry, green transition, cultural and creative industries, car testing industry and the tourism industry.

The regions and those who run businesses there can help decide what is important to spend EU money on. This is necessary if the development work is to be successful.

The work therefore involves many voices, thoughts and ideas. Region Norrbotten discusses with colleagues in Västerbotten. Holds dialogues, webinars and forums. This reveals what can further strengthen Norrbotten's competitiveness and where Norrbotten has good conditions. These could include, for example, investments in digitalization, companies and trade, skills supply, circular economy, research and innovation, transport and travel.

In the end, you have programs that are hammered out by the European Commission. But the programs are a framework and a guideline, there are no concrete projects involved. It is companies, universities and the organization that later fill the programs with content with their ideas.

There is a program for each structural fund that Norrbotten receives money from. This period it is:

ERDF (European Regional Development Fund)
ESF+ (European Social Fund)
JTF (Just Transition Fund)
Interreg Aurora

When the programs are complete and it is possible to apply for funds from the funds, it is necessary to select the best projects that have applied for EU money.

For ERDF and ESF+, the Swedish Agency for Economic and Regional Development and the ESF Council respectively decide which projects are granted EU funds. Before making a decision, Region Norrbotten and Region Västerbotten must express their opinion on the projects as regional development authorities.

For Interreg Aurora, a steering group with actors from Norway, Sweden and Finland selects the projects that receive funding. For FRO, the Swedish Agency for Economic and Regional Development selects which projects will receive funding.

FACTS

European Regional Development Fund (ERDF). This fund aims to even out differences between different regions when it comes to growth and jobs. Places that have geographical difficulties, such as Norrbotten, are favoured. This may be because the area is remote, sparsely populated or mountainous. The ERDF includes funds for research and innovation, broadband, digitalisation, business development, skills provision, renewable energy, climate adaptation, circular economy, infrastructure.
European Social Fund (ESF). This fund supports skills supply and an inclusive labor market. It will create more jobs, make it easier for those who have difficulty finding a job, and create opportunities to get better jobs. During the corona pandemic, the fund was an important tool to alleviate the economic crisis.
JTF (Just Transition Fund). It is about supporting transition in those parts of Europe where the local economy relies heavily on fossil fuels and technology that must be phased out for the sake of the climate. In Sweden, Norrbotten, Västerbotten and Gotland are covered by the FRO. In Sweden, the fund provides several billions for transition of the steel industry and mining industry in Norrbotten and Västerbotten.
Interreg Aurora: supports cross-border collaborations in northern Sweden, northern Norway and northern Finland. This can concern research, innovation, entrepreneurship, climate adaptation, biodiversity, cross-border mobility of people and products. Education, culture and tourism.
The Strategic Partnership for Upper Norrland: The strategic partnership consists of representatives from municipalities, regions, the Sami Parliament, labour market organisations, relevant interest organisations and associations, the Swedish Public Employment Service, the Swedish Social Insurance Agency, the County Administrative Board and universities. The partnership is common to the Upper Norrland programme area, which consists of Norrbotten and Västerbotten. The Swedish Agency for Economic and Regional Growth and Economic Development and the ESF Council, as managing authorities for ERDF and ESF+, shall collaborate with the strategic partnership in the work on call plans and calls for funds.
Smart specialization strategy (S3). A strategy that identifies which areas a region has the best potential to develop. Here it is available in full length and as a short version.