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Austria

1. PARTNERSHIP AGREEMENT EC – AUSTRIA 2021 - 2027

The partnership agreement with Austria covers 5 funds: ERDF, ESF+, Cohesion Fund, Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund (EMFAF)On the 2nd of May 2022, the Commission published its Partnership Agreement with Austria, which is a €1.3 billion cohesion policy investment strategy for the period 2021-2027.  

A. INTRODUCTION ERDF AND ESF+ 2021 - 2027

ERDF
Austria aims to invest 61% of its European Regional Development Fund (ERDF) resources in research infrastructure for high-tech production, boosting productivity and resource efficiency. Circular economy, digitalisation and energy efficiency will be guiding principles in the selection of projects.
To improve quality of life in cities and urban areas, Austria will invest €46 million of the ERDF allocation in sustainable urban and rural development focussing on resource efficiency, climate adaptation, an innovation-oriented economy and local development. Drawing on the positive experience with the Community-Led Local Development (e.g., the CLLD project KLAR! KAUNERGRAT), this approach will be continued in Tyrol to boost integrated social, economic and ecological development.
The program contributes to the sustainably, which is strengthening Austria’s competitiveness and generates employment. The following results are aimed for:
  • Improved productivity and competitiveness of companies through innovation projects and the adoption of state of the art & digital technologies
  • Reducing energy consumption and CO2 emissions by promoting investments in more resource and energy efficiency, as well as integral consideration of the circular economy
  • Increasing the quality of the environment, air and quality of life in cities and urban environs via integrated concepts for sustainable urban development and resource-saving land development
  • Implementation of integrated regional development via the CLLD approach in Tyrol for promotion of integrated social, economic and environmental development
The idea of cooperation is anchored in the specific goals and the relevant measures. The goal of “energy efficiency first!” is taken into account for infrastructure investments in accordance with the requirements of the umbrella ordinance when selecting projects.

-> ERDF programs: 

  • Programm IBW-EFRE/JTF 2021–2027: Europäischer Fonds für Regionale Entwicklung: IBW-EFRE/JTF 2021–2027: Investitionen in Beschäftigung, Wachstum und den Übergangzueiner CO2-armen Wirtschaft in Österreich 2021–2027
ESF+
The ESF funds in Austria are distributed by 13 different intermediate bodies;  4 of them are part of national administrative bodies (see here: https://www.esf.at/foerderprogramm/foerderstellen/). The largest share, however, is distributed by the 9 federal states. All of them have different priorities in terms of what and whom to fund, but overall there is a strong emphasis on projects for labour market integration.
Austria has allocated around €130 million from the European Social Fund Plus (ESF+) and ERDF to promote social cohesion. Attention will be paid to gender equality and equal opportunities in education and employment by, for example, promoting women’s and single parents’ access to the labour market. Funds will also support investments in infrastructures, jobs and education for persons with disabilities, people with migrant backgrounds and other disadvantaged groups.
Furthermore, the ESF+ will focus on social innovation, with a Centre of Excellence, promoting knowledge sharing and creating networks, participatory processes and experimentation spaces to strengthen innovation capacity.
Via ESF+, measures are implemented that contribute to the goal of a more social and inclusive Europe. The interventions are embedded in national policy approaches, above all the National Reform Programme.
Three strategic priorities are set for the reconciliation and equality of women and men implemented:
  1. Measures that address the unequal distribution of income (including the low-wage sector): (Further) development of company-related approaches, qualification, professional training
  2. Regional and sector-specific approaches that support the compatibility of work and care tasks (e.g. childcare): innovative, regional approaches (e.g. networks between communities, companies and stakeholders, advice on re-entry)
  3. Measures to break down stereotypes: approaches to promoting gender-neutral career choices, Qualification, campaigns, pilot projects for/with target groups that have not been reached so far.
 
-> ESF+ programs:
  • ESF+ ProgrammBeschäftigungÖsterreich & JTF 2021-2027
  • ESF+ Programm zur Bekämpfung materieller Deprivation 2021-2027

2. POLICY CHOICES

ERDF
  1. Europäischer Fonds für Regionale Entwicklung – EFRE, Programm IBW/EFRE & JTF 2021-2027 – Investitionen in Beschäftigung, Wachstum und den Übergangzueiner CO2-armen Wirtschaft in Österreich 2021-2027 (Investments in employment, growth and the Transition to a low-carbon economy in Austria 2021-2027)
Policy Objective 1: a more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity;

Justification for choice PO: Despite positive macroeconomic developments before the Covid-19 pandemic, the multi-factor productivity (MFP) showed that in a European comparison, Austria has a high level of labor productivity but multi-factor productivity (MFP) has grown more slowly than in other European countries since the financial and economic crisis (OECD, 2018). The interventions also address the challenge of increased participation in the European Research Area. Moreover, there will be a focus on SMEs, more specifically upgrading the existing skills and specializations. “Digitization” will be an integral topic of the program due to its high importance and will be supported by research and innovation projects.  

Policy Objective 2: a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility.
Justification for choice PO: Austria has committed to climate neutrality by 2040 (Austria) and the EU by 2050. Austria wants to contribute to the goals of the Green Deal via a resource-efficient and competitive economy and decoupling growth and resource use. The main target group are  companies. There will also be further efforts that are required to strengthen the circular economy.
Policy Objective 5: a Europe closer to citizens by fostering the sustainable and integrated development of all types of territories and local initiatives.
Justification for choice PO: Due to advancing urbanization, this PO is chosen. In Austria almost 60% of the population in urban live in settlement areas. This brings challenges related to urban sprawl, land take, increase in commuter flows and the resulting negative environmental impacts, in particular the air pollution. Moreoever, cities are experiencing higher temperatures and prolonged heat waves. A minimum endowment of 8% of the ERDF funds is   maintained. Due to the challenges presented in terms of resource and land use as well as climate, environment and mobility, the focus is on functional city regions particularly affected.
ESF+
  1. ProgrammBeschäftigungÖsterreich 2021-2027 & JTF – EuropäischerSozialfonds- ESF+
This programme is linked to policy objective 4: A more social and inclusive Europe in which the European Pillar of Social Rights is implemented.
Justification choice PO:  In the intervention strategy, individual principles from all three  chapters of the European Pillar of social rights is taken into account and the interventions are closely aligned with the Country-specific recommendations of the Council and the National Reform Program. The European Commission recommends Austria also has a priority for the new program period to promote Labor market participation of women and equality between women and men. The risk of poverty and social exclusion is below the EU average but there are still around 1.5 million people in the situation. Especially the long-term unemployed are affected. Therefore, measures that focus on the group of poverty and social exclusion will be put in place. The country report of the European Commission of 2019 refers to the low level of basic skills in specific socioeconomic groups, in comparison with the EU. Mainly affected are the low-skilled, the unemployed and young people who are not in employment, are in education or training (NEETs).
  1. ESF+ ProgrammzurBekämpfungmaterieller Deprivation 2021-2027
This programme is linked to policy objective 4: A more social and inclusive Europe in which the European Pillar of Social Rights is implemented.
Justification choice PO: The program contributes to securing livelihoods and combating poverty. Furthermore, principle 11 of the European Pillar of Social Rights is addressed Rights to affordable early childhood education and care and protection from poverty and the Right of children from disadvantaged backgrounds to special measures to promote includes equal opportunities. These goals are to be achieved through the annual distribution of school articles for children from minimum income / social assistance households are supported. The distribution of school articles contributes extensively to the fight against poverty among children. Target for the funding period: 335,000 participants in the program. At the national level, additional support is sought to enable participation that covers needs.
Reference is made to the following principles:
  • The European Pillar of Social Rights was adopted by the European Council in autumn 2017, which in the “Social Protection and Social Inclusion” section contains the special principle for the protection of includes children from poverty.
  • The European Child Guarantee, adopted by the Council of the European Union on June 14, 2021, aims to ensure that every child at risk of poverty in Europe has access to fundamental rights like health and education gets.
  • The results of the mid-term evaluation of the Fund for European Aid to the Most Deprived, including the results of the stakeholder interviews recognize that the fund’s material support and social inclusion measures help the target groups in a real way.

3. LINK TO SOCIAL SERVICES – OBJECTIVES RELEVANT TO SOCIAL SERVICES

In Austria, the relation between the ESF(+) and social services is quite strong. Priorities such as active inclusion, live long learning and gender equality enable a variety of projects for vulnerable groups, many of these are provided by social service organisations. Target groups include young people, migrants, or people with lower degrees of formal education. Social services in Austria are largely publicly funded, and provided by NGOs (mainly associations). For some of those organisations, the ESF is an additional source of funding (e.g. as a supplement to basic financing by ministries, or, such as arbeit plus members, the Public Employment Service). A list of projects can be found here (German only): https://www.esf.at/projekte/

4. USEFUL RESOURCES

HELPDESK Support

Co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.

HELPDESK Support

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.
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