What does the term 'co-financing rate' refer to in EU programmes?

The term 'co-financing rate' in EU programmes refers to the contribution that EU funding makes as a percentage of the total costs of a project or programme. This is an essential concept in EU funding schemes, where the EU typically provides financial support to projects that also require contributions from other sources, such as national governments or private entities.

In this context, the co-financing rate indicates the proportion of the overall funding that is covered by the EU, illustrating the collaborative nature of most funded initiatives. This rate can vary depending on the specific programme and the policies that govern it, with some projects receiving more significant support while others may have stricter funding conditions that require a higher contribution from other sources.

Understanding the co-financing rate is crucial for project planners and managers, as it impacts budgetary considerations and the overall financial structure of projects funded by EU programmes.