Project detail

Study on ERDF/CF Common Indicators and Financing Not Linked to Costs (FNLC)

This study examined how common indicators under the 2021–2027 programming period of the European Regional Development Fund (ERDF), the Cohesion Fund (CF) and the Just Transition Fund (JTF) were used by Member States, and whether they could support a shift towards Financing Not Linked to Costs (FNLC).

FNLC represents a simplified financing model in which EU payments are triggered by the achievement of predefined results rather than the reimbursement of eligible expenditure. The study evaluated the robustness, comparability and operational suitability of common indicators as potential performance triggers within a more outcome-oriented Cohesion Policy framework. The analysis combined large-scale quantitative assessment of programme data, methodological review of target-setting practices, benchmarking across Member States, comparison with Recovery and Resilience Facility (RRF) indicators, and consultation with programme authorities and evaluation experts.

The study combined advanced quantitative and qualitative techniques, including:

  • Large-scale data analysis of programme performance and financial datasets
  • Machine learning techniques to integrate and harmonise datasets
  • Benchmarking across Member States and Specific Objectives
  • Comparative analysis with Recovery and Resilience Facility (RRF) milestone and target indicators
  • Stakeholder surveys involving selected programmes and members of the DG REGIO evaluation network
  • Practical testing through “Investment Action Matrices” simulating FNLC applications.

CSIL led the assessment of how common indicators are used across Member States and conducted an analysis of the Achievements and Finances datasets available on the Cohesion Open Data Platform, developing and implementing a machine learning-based methodology to merge and harmonise these datasets, which enabled the integration of the analysis of financial allocations and reported outputs.

The study confirmed the strong potential of many ERDF/CF common indicators in a performance-based setting. Their methodological homogeneity and broad coverage support comparability and aggregation across Member States.

Cover image generated with Google AI Studio. The illustration is for visual and illustrative purposes only and does not depict actual project data or outcomes.

Client: EU Commission - DG REGIO
Client type: public
Year: 2023-2024
Consortium: t33 (leader), CSIL, Spatial Foresight (partners)
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