1. Sustainable growth

Sustainable growth consists of two subcategories: Competitiveness for Growth and Employment, and Cohesion for Growth and Employment.

The two subcategories are connected and aim to increase the Union's competitiveness, boost the European economy and create better jobs.

Various community programs pertaining to research, innovation, education, the internal market and the EU networks are financed under the first subcategory.

The second subcategory finances the regional policy and is comprised of the two structural funds and the Cohesion fund. This policy aims to enhance convergence of the least developed Member States and regions and contribute to a sustainable development.

1.a Competitiveness for Growth and Employment

The Community has set the objective to create a knowledge-based society and become the most competitive and dynamic knowledge-based economy in the world (according to the Lisbon-strategy). The triangle of knowledge, education/research and innovation, is a principal tool in achieving this goal.

This subcategory covers actions promoting the competitiveness of firms within an integrated single market, the creation of a European research area, the improvement of the standard of education and training, with an emphasis on mobility, and the achievement of the social policy agenda, combining legislation, the open method of coordination and social dialogue.

Financial assistance under this subcategory concerns Research and Development, the trans-European transport and energy networks (TEN), entrepreneurship, the growth of small businesses, the innovative potential of the EU, education and training investment in information technology for public services, and cost effective energy purchasing and consumption.

The main community programs within this subcategory are:

7 th Framework Programme of the European Community for research, technological development and demonstration activities (FP7)

Competitiveness and Innovation Programme (CIP)

Lifelong Learning Programme

1.b Cohesion for Growth and Employment

This subcategory finances the regional policy, which aims to make regions more attractive, innovative and competitive places to live and work. It focuses on growth and jobs for all regions and cities of the European Union and promotes a harmonious, balanced and sustainable environment for the Community.

The Regional Policy aims to strengthen the economic, social and territorial cohesion of the Union by reducing socio-economic disparities in development between regions. It is financed by the two structural funds, the European Regional Development Fund (ERDF) and the European Social Fund (ESF) and also by the Cohesion fund.

The previous objectives will be replaced by three new objectives reflecting the priorities for the budgetary period 2007-2013 namely: Convergence, Regional Competitiveness and Employment and Territorial Co-operation.

Financial sources:

European Regional Development Fund

European Social Fund

The Cohesion Fund