These structural funds are allocated through ‘Objectives’ which are agreed for each EU programme. There are three new Objectives for 2007-2013 under which member states will be eligible for funding: these are Convergence, Regional Competitiveness and Employment, and Co-operation.

Convergence Objective

This replaces Objective One and is targeted at supporting the economic convergence of the poorest member states and regions. This means the poorest member states and regions will be supported to up to more developed member states and regions in terms of economic productivity and growth. The UK will receive around €2.6 billion for Cornwall, the Isles of Scilly, West Wales and the Valleys and the Highlands and Islands. This funding is designed to assist these areas to ‘phase out’ of this objective, allowing a transitional period following the Objective One funding these areas received 2000-2006.

Regional Competitiveness and Employment Objective

This replaces Objectives Two and Three and will support the development of competitiveness, employment and skills in regions not eligible for Convergence Objective funding. Both the European Social Fund (ESF) and European Regional Development Fund (ERDF) will operate within this Objective. The UK will receive around €6.2 billion to cover the whole of the UK except those areas above in receipt of Convergence Funding. South Yorkshire and Merseyside qualify for ring-fenced ‘phasing-in’ funding through this Objective to provide transitional support at the end of the Objective One funding these areas received 2000-2006.

Co-operation Objective

This replaces the Interegg Community Initiative and will finance cross-border and transnational co-operation work. It is aimed at strengthening project co-operation, as well as establishing co-operation networks and furthering the exchange of experience and best practice between Member States at all levels.It will be funded by ERDF only and the UK will receive around €0.6 billion.

Current priorities

At least 75% of all European Structural funding for 2007-2013 has to be spent on achieving the ‘Lisbon Agenda’ which is a strategy for EU spending and means that spending will be mainly focused on achieving sustainable economic growth and more and better jobs.