European Regional Development Fund, Cohesion Fund

The European Regional Development Fund (ERDF) and the Cohesion Fund (CF) Programme for Malta for the 2014-2020 period, being Operational Programme I – Fostering a competitive and sustainable economy to meet our challenges – 2014-2020, aims to strengthen the productivity of enterprises, boost research and innovation, enable the shift towards a more low-carbon and environmentally-friendly society, foster health and social development and increase education attainment in line with Malta’s ambition to contribute towards the Europe 2020 targets for smart, sustainable and inclusive growth.

The focus on economic growth will create more and better jobs, increase home-grown Research & Development (R&D), enable Small and Medium Enterprises (SMEs) to be more competitive and delve into new markets, foster entrepreneurship and encourage new start-ups and, further consolidate Malta’s achievements in Information and Communication Technology (ICT).

The emphasis on environmental sustainability through ERDF will increase Renewable Energy Sources (RES) and energy efficiency in buildings as well as promote a shift towards a low-carbon transport sector. Sustainable urban development will also be targeted in a holistic manner through measures for social inclusion and an improved urban environment. Moreover, specific attention will also be given to the preservation and development of Malta’s natural and cultural heritage. CF resources will be focusing on ensuring water quality and supply, sustainable water management as well as the development and upgrading of the TEN-T network.

This Programme focuses on social inclusion whereby interventions will focus on promoting healthy lifestyles, addressing poverty and social exclusion, including through a shift towards health and social community-based services, and increasing educational attainment in further and higher education (including Vocational Education and Training (VET)).

In response to the coronavirus pandemic, the Recovery assistance for cohesion and the territories of Europe – REACT-EU – was introduced to this Operational Programme. This ERDF fund top up is meant to improve the resilience of the health sector through investment in new, upgraded equipment, leading to new and upgraded services and a continued effort towards the digitalization of the public health care system.

Challenges arising within the context of post Covid-19 economic recovery and the war in Ukraine have resulted in the disruption of the energy market and volatile increases in energy prices, notably for gas and electricity, in the face of supply shortages. Amongst various EU measures undertaken to address this energy crises, the SAFE (Supporting Affordable Energy) package provides an opportunity for EU funds to support emergency intervention to address high energy prices.

Financial information

​Total OP budget: €672,921,971.00

EU Co-Financing Rate: ERDF (80%); REACT-EU ERDF (100%); CF (85%); SAFE CF (100%)

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