Dresden. EU structural funds have helped boost growth in economically weak regions, according to a new study by the Dresden branch of the ifo Institute.
EU funds fueled €42 billion growth in Germany's struggling regions
"Our calculations show that every euro of EU funding ultimately generated two euros in additional gross domestic product," said Joachim Ragnitz, deputy head of the ifo branch. "Funding for research, knowledge transfer, and innovation proved particularly effective, as these areas yield especially high productivity gains."
During the 2014–2020 funding period, Germany received nearly €21 billion in EU structural funds. Nearly two-thirds of that sum went to economically weaker regions in eastern Germany, which were classified as particularly deserving of support under EU criteria. Per capita, total funded investments in the east amounted to around €700 per resident, compared to just €150 in western Germany. Without this assistance, public investment in eastern Germany would have been significantly lower. Small and medium-sized enterprises also benefited from EU-cofinanced funding programs.
"Given the tight budgets of eastern German states and municipalities, many investments in infrastructure and growth-promoting projects would not have been possible," Ragnitz noted. With negotiations on the EU's 2028–2034 financial framework currently underway, he warned against cutting these funds: "Reducing EU support could have severe negative consequences."
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