EU STRUCTURAL FUNDS DICTIONARY

Criteria set out within the European Commission Recommendation of 6 May 2003 (2003/361 / EC) entered into force on 1 January 2005:

  • Micro-enterprise: less than 10 employees, max turnover 2 Million Euros, asset statement up to 2 Million Euros;
  • Small business: less than 50 employees, maximum turnover 10 million Euros, asset statement up to 10 million Euros;
  • Medium-sized company: less than 250 employees, max turnover 50 million Euros, asset statement up to 43 million Euros;
  • Large company: higher values than those indicated above and / or holdings by another company / s over 25%.

To calculate the dimensional parameters, any subsidiaries or companies that you control or that control you for at least 25% of the capital or of voting rights must be taken into account.

A document in which a specific business project is explained in using business language. The business plan sets out in quantitative terms the objectives to be achieved and their compatibility with the resources (financial, technological, know-how and human) that a company has or should dispose of.

The term "calls for proposals" indicates any subsidized measures issued by the various European, national, regional and provincial funding bodies.

It is the equivalent of the non-repayable grant. It is calculated as a percentage of the eligible expenses, duly reported; there is no return of capital or interest payments. The object of the subsidy may be an asset investment or a specific category of costs.

When the funding or grant that an enterprise obtains must be assisted, in different percentages, by shares of financing of the same enterprise. An example is represented by the training funds, for which a company receive 80% of the grant with an own contribution of 20%.

Geographical areas that fall into the objectives 1 and 2 of the EU structural funds (EC Regulation n.1260 / 1999). Objective 1 includes those regions whose development is lagging behind; objective 2 includes the areas undergoing socio-economic mutation in the industry and services sectors, declining rural areas, urban areas in difficulty and areas dependent on fishing that are in a crisis situation (see also OBJECTIVE 1 and OBJECTIVE 2 definitions).

Introduced in 1992 by the European Commission, the “de minimis” aid allows the Member States to provide, without particular constraints, low value aid that cannot distort competition between companies. This aid scheme is quantified as a maximum of € 200,000.00 of contributions granted over a three-year period, including incentives deriving from different laws.

The “de minimis” legislation does not apply:

  • To the transport sector and to those activities related to the production, processing or marketing of products referred to in Annex I of the Treaty establishing the European Union;
  • In favour of export-related activities, i.e. aid directly linked to the quantities exported, to the construction and operation of a distribution network or to other current expenditures linked to the export activity;
  • Aid contingent on the use of domestic products over imported products.

General principle that concerns the prohibition of any discrimination based on nationality and that protects equality between men and women. This principle is applicable in all fields, in economic, social, cultural and family life.

The ESF was established in 1957 by the Treaty of Rome and it is the first one among the Structural Funds. The aim of the European Social Fund is to solve the employment problems caused by the European integration, mainly through the promotion of vocational training and professional requalification actions to help existing and potential unemployed people. The ESF programmes are developed by the Member States in collaboration with the EC, to be integrated with additional support mechanisms of the other Structural Funds. The implementation is then committed to the competent national and local authorities, in partnership with the private sector and civil society.

Financial institution of the European Union for medium-long term financing in some sectors. Members of the European Investment Bank are the EU Member States. It has the aim of contributing to the economic, social and territorial cohesion through the balanced development of the community territory. The legal basis of the EIB are Articles 198 D and 198 E of the Treaty establishing the European Community.

The term "easy finance" includes a set of different instruments that are characterized by financial contributions provided by a public entity in favour of a company.

Type of facility where the stipulation of the loan and the granting take place simultaneously. The loan is granted exclusively at a reduced rate. Generally, subsidized loans also include subsidized periods or pre-amortization at a reduced rate for two / three years.

The grant is a financial aid granted in the form of direct aid or tax relief. Concretely, it can consist of non-repayable contributions, interest-free advances, risk-capital participation. The grants that distort competition are banned in the EU. Exceptions are allowed when the grants aim at social, structural and regional improvements.

This is a tool designed to help those companies that intend to take advantage of loans and that are not able to provide the guarantees required by credit institutions. Through the establishment of specific funds, guarantees are granted in full or partial support of medium / long-term loans requested by the beneficiaries to face the investment programmes.

The interest rate is the part of the loan repayment instalment that repays the related interests. Such amount depends on the interest rate, on the duration and on the whole amount of the loan.

It is a form of concession that decreases the interest rate applied to a loan or lease granted against an investment programme. Recently the contribution is often paid in advance. As an example, if a 5-year lease contract is signed for an amount of € 500,000.00 and the total interest amounts to approximately € 50,000.00, if the subsidy foresees a 50% reduction in interest, a sum equal to approximately € 25,000.00 will be credited to the Company's current account in advance.

The interest subsidy normally refers to the stipulation of the loan and the request for the facilitation as two separate and different things and in two different moments. No special guarantees are required from the facilitating body, as the positive outcome of the preliminary investigation carried out by the financing institution is normally enough.

The leasing is comparable to an interest subsidy and it applies to a finance lease contract; its aim is to lower the cost of the fees payable by the beneficiary.

According to the EU legislation on Structural Funds, a measure is the instrument through which a priority axis is implemented over a multi-year period and which allows the financing of several operations.

The Operational Programme is a programme whose funding is secured by several funds. Each Operational Programme therefore includes the illustration of the axes and objectives; the description of the measures envisaged to implement the priority axes; an indicative financial plan; the implementing provisions. The National Operational Programme is prepared by the relevant Managing Authority (i.e. the Ministries) and is approved by the European Commission. The 2000-2006 CSF provides, for Objective 1 regions, seven National Operational Programmes:

  • Scientific research, technological development, advanced training;
  • The school for development;
  • Security for the development of Southern Italy;
  • Local development;
  • Transportation;
  • Fishing;
  • Technical assistance.

The term is referred to the provision of a sum of money that should not be returned. The grant can be used to finance start-up costs, investment costs or expenses related to the management of an initiative. For example, in the case of an investment of € 500,000.00, if you obtain a non-repayable grant of 15%, after the financial reporting, a sum of € 75,000.00 will be credited to the current account of the company.

Definition used by the European Union to indicate one of the three priority objectives identified by the community policy; objective 1 includes those areas that are lagging behind in terms of socio-economic-industrial development.

Priority assigned within the Structural Funds to promote the development and structural adjustment of those regions whose development is lagging behind, i.e. with a Pro-capite GDP below 75% of the community average.

In the case of Italy, Objective 1 areas include the following regions:

  • Basilicata;
  • Calabria;
  • Campania;
  • Puglia;
  • Sardinia;
  • Sicily.

Name used by the European Union to indicate those areas undergoing socio-economic change in the sectors of industry and services, declining rural areas, urban areas in difficulty and areas dependent on fishing that are in a crisis situation.

The regions of Italy that fall within the objective 2 areas are:

  • Emilia Romagna;
  • Friuli Venezia Giulia;
  • Lazio;
  • Liguria;
  • Lombardy;
  • Marche;
  • Piedmont;
  • Tuscany;
  • Trentino Alto Adige;
  • Umbria;
  • Valle d'Aosta;
  • Veneto.

One of the three priority objectives identified by the Community policy. Objective 3 aims to support the compliance and modernization of the education, training and employment policies and systems. This objective is not regionalized.

This objective provides a political reference framework for all the actions in favour of human resources in each national territory.

This type of contribution is similar to a capital contribution; it differs from it with regard to taxation. In this case, the contribution is identified as revenue and must be taxed in the relevant period and for the whole amount. This type of benefit is granted to contribute to the management costs (personnel, advertising, travel, property leases, financial charges, etc.) that the beneficiaries must incur in a given project.

The term indicates the need for co-participation or collaboration of several parties for the implementation of a project. Being in a partnership requires specific financial, technical and managerial obligations. The concrete types of partnership can be different and are specified in the individual programmes and calls.

Regional planning document, approved by the European Commission for the implementation of a Community Support Framework (CSF), drawn up by the competent regional authorities, which specifies the intervention proposals and the implementation methods indicated in the CSF. It is made of a coherent set of priority axes, divided into multi-year measures, and for their realization, it is possible to use one or more Structural Funds and one or more of the existing financial instruments. The disbursement of the EU funding takes place only after the approval of the Operational Programme by the European Commission.

Production and presentation of all the documentation related to the activities carried out during a project, with which the company requests the recognition of the expenses incurred in the context of the financed initiatives.

Balanced and diversified development of rural activities aimed at:

  • Strengthen the economic and social context of rural areas;
  • Stop the exodus of the population, guaranteeing the maintenance of economically profitable and diversified agriculture and at the same time developing complementary or alternative activities (farm holidays, recreational activities, services, etc.). Protecting the environment, natural resources, cultural and landscape heritage of rural areas are some of the main priorities.

The share capital is the part of the repayment instalment of a loan that repays the loaned capital. The amount of this share depends on the amount and duration of the loan.

Internship provided, generally, in the training process of a course activity, which usually takes place within a company. It can have cognitive, coaching, insertion into employment or pre-socialization purposes.

Approach based on the choice of balanced economic growth that takes into account the employment needs and social inclusion, the needs of the companies, the health and well-being of all as well as the environmental protection.

When this credit matures, it can be used to offset future tax charges and liabilities (VAT, INPS contributions, IRES, IRAP etc.) through the F24 form or the Single Model.

It consists of a tax exemption from business income (IRES). It can be used, based on the law, for tax periods from 1 to 5 years. Some regulations require that the tax base needs to be reduced in the year in which the benefit is obtained, while most regulations indicate that it can be used in a period of 5 years. In fact, if in the year in which the benefit is earned, the company is at a loss or the profits are not sufficient for a complete tax reduction, the reduction can be reported in the following 4 years.