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The federal government funds investment projects and supports employment in Germany in cooperation with the German states. A great deal of the funding comes from the European Union (EU), which supports regional economic development in the member states.
Germany will receive EUR 25.5 billion from 2007 to 2013 from the EU’s two main financial instruments, the European Social Fund (ESF) and the European Regional Development Fund (ERDF).
European Social Fund (ESF)
Public funding is allocated according to a region’s level of economic development. The EU has defined two key target areas, which receive differing levels of support:
Convergence Areas that require comprehensive support in order to bridge the gap with well developed regions in Europe
Western Germany is defined as a Regional Competitiveness and Employment Area; eastern Germany is classified as a Convergence Area. Both areas are open to a wide variety of public financial support.
The EU provides special funding for these areas in order to reduce inequalities between regions with higher and lower levels of economic development and to establish a strong, unified economic area that facilitates worldwide competitiveness.
In addition to the development programs of the EU and the German government, North Rhine-Westphalia has established its own investment incentives for the creation and securing of long-term jobs and training positions in the structurally weak regions of the state with its Regional Economic Development Program (RWP). The RWP grants are intended for industrial investments which create or secure jobs.
Promotion is provided primarily for supraregionally operating companies: Small and medium-sized enterprises (SMEs) are subsidized provided that
In individual cases, other large enterprises can also be subsidized, with the maximum subsidy lying at € 2.5 million.
The development areas include large parts of the Ruhr region, Mönchengladbach and the districts of Heinsberg, Herford, Höxter and Lippe.
The companies receive grants up to 28 percent of the investment sum. The maximum invested amount eligible for subsidy per newly created jobs is € 500,000 (per secured job € 250,000). Applications should be submitted to NRW.INVEST or NRW.BANK.
Contacts:
NRW.INVEST GmbH
Economic Development Agency
of the German State of North Rhine-Westphalia
Völklinger Str. 4
40219 Düsseldorf, Germany
Tel.: +49 (0)211/13000 0
Fax: +49 (0)211/13000-154
E-Mail: nrw@nrwinvest.com
NRW.BANK
Advice Center Rhineland
Kavalleriestraße 22
D-40213 Düsseldorf
Tel.: +49 (0)211/91741-4800
Fax: +49 (0)211/91741-9219
Branch Office of NRW.BANK in Münster
Advice Center Westphalia
Friedrichstraße 1
D-48145 Münster
Tel.: +49 (0)251/91741-4800
Fax: +49 (0)251/91741-2666
www.nrwbank.de
The EU has set up rules to control the allocation of its funding programs for investment projects. These rules apply to every member state of the EU, independent of the country’s level of economic development and incentive area classification.
They are designed to assure equal competition between member states with differing levels of economic development.
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