2021–2027 programming period
The planning of the use of Cohesion Policy funds, i.e. European Union Structural Funds, is based on the country-specific recommendations issued by the European Commission and on the development needs and objectives defined in the long-term strategy “Estonia 2035”.
The Structural Funds are distributed among the European Regional Development Fund, the Cohesion Fund, the European Social Fund Plus, and the Just Transition Fund.
During the 2021–2027 period, Estonia was allocated EUR 3.37 billion in European Union Cohesion Policy funding. The use of these funds is guided by six objectives: Smarter Estonia, Greener Estonia, More Connected Estonia, More Social Estonia, Estonia Closer to People, and Just Transition.
In addition, Estonia receives support from the Recovery and Resilience Facility and the REACT-EU emergency assistance fund, amounting to approximately EUR 1.1 billion in total. REACT-EU resources provide rapid crisis response funding to mitigate the impacts of the COVID-19 crisis. This includes support for vaccination and testing, wastewater monitoring studies, the establishment of isolation wards in hospitals, and training for healthcare and nursing home staff. In addition, measures are implemented to stimulate the economy, particularly supporting the tourism sector and entrepreneurship more broadly.
The focus of the European Union Cohesion Policy for the 2021–2027 period is on six overarching policy objectives: Smarter Estonia, Greener Estonia, More Connected Estonia, More Social Estonia, Estonia Closer to People, and Just Transition.
To achieve Smarter Estonia, support is planned for innovation, digitalisation, economic transformation, and the development of small and medium-sized enterprises. According to the Estonian Government’s position, entrepreneurship and innovation should be supported to ensure that Estonia becomes a breeding ground for ambitious business ideas and that Estonian companies produce high value-added products and services. Estonia should be a well-functioning environment for the development of smart solutions that increase competitiveness, improve people’s well-being, and make public administration more efficient. One of the objectives is to ensure a high internationally competitive level of science, enabling the network of research institutions to operate efficiently and sustainably in modern conditions. Promoting cooperation between businesses, researchers, and public authorities is planned. Every motivated and capable prospective student should have the opportunity to obtain high-quality higher education that meets labour market needs.
Greener Estonia involves investments in the transformation of the energy system, the development of renewable energy, and the prevention and mitigation of climate change impacts. The Estonian Government has set the objective of ensuring environmental protection, biodiversity conservation, and the sustainable use of natural resources. Among other measures, Structural Funds support is planned to create opportunities for more sustainable energy consumption, modernise transport infrastructure, and improve the energy efficiency of buildings.
Transport and digital networks enable the development of a more connected Estonia. One of the Government’s objectives in this area is to ensure access to fast internet in locations where the market alone is unable to provide it. Plans also include the reconstruction of railways, the construction of roads, and support for the deployment of environmentally friendly modes of transport and fuels.
More Social Estonia supports quality employment, education and skills development, greater social inclusion, and equal access to healthcare services. This also includes supporting safe communities so that residents are able to recognise security risks, avoid them, and respond appropriately when necessary. By developing labour market services and the occupational health system, the aim is to achieve and maintain a high level of employment, enabling people to participate in working life over the long term. Enhancing the well-being of children and families and improving quality of life contribute to higher birth rates.
Estonia can be brought closer to its citizens by supporting locally led development and sustainable urban development. The Government’s objective is to improve access to good jobs and high-quality services in all regions and to make the living environment more pleasant throughout the country. This includes developing the living and business environment in Ida-Viru County and South-East Estonia, increasing the added value of regional entrepreneurship, including tourism, and supporting better adaptation to ageing and declining populations in rural areas. Support is also provided to ensure the vitality of Estonia’s cultural heritage and regional cultural spaces, as well as to protect cultural and natural heritage and to develop related tourism services and entrepreneurial networks.
The Just Transition Fund is the main instrument for supporting regions most affected by the transition to climate neutrality and for preventing the widening of regional disparities. Its main objectives are to mitigate the impacts of the transition by financing the diversification and modernisation of local economies and by reducing negative effects on employment. To achieve these objectives, the Fund supports investments in areas such as digital connectivity, clean energy technologies, emissions reduction, regeneration of industrial sites, reskilling of workers, and technical assistance.
During the 2014–2020 budget period of the European Union, Estonia receives 4.4 billion euros as support from the following structural and investments funds:
- European Regional Development Fund (ERDF)
- European Social Fund (ESF)
- Cohesion Fund (CF)
- European Agricultural Fund for Rural Development (EAFRD)
- European Maritime and Fisheries Fund (EMFF)
The five main funds cooperate in order to support economic development in line with the Europe 2020 strategy in all Member States of the European Union.
A partnership agreement, which covers the five aforementioned funds, was signed between Estonia and the European Commission on 20 June 2014, establishing the following:
- Funding priorities
- Objectives and expected results
- Prerequisites for using euro funds
- Overall management of the administration of instruments
Based on the partnership agreement, an operational programme of the Cohesion Policy funds was prepared under the leadership of the Ministry of Finance, which was approved by the European Commission on 10 December 2014. The operational programme describes specific objectives and expected results (including for each fund separately) of using the EU instruments in various fields of activity that receive funding, as well as measures and their funding:
On the basis of the partnership agreement, two more operational programmes will by prepared under the leadership of the Ministry of Agriculture:
- Operational Programme for the Estonian Rural Development Plan 2014–2020
- Operational Programme for the European Maritime and Fisheries Fund 2014–2020
During the period of 2007–2013, it was possible for Estonia to use support from the European structural and investment funds in the amount of nearly 3.4 billion euros, which is about twice as much as previously. More than half of this support originates from the European Regional Development Fund. In addition to finances allocated from the European Union, Estonia will add its own contribution in the approximate sum of 575 million euros. Agriculture and fisheries support was no longer considered as structural support in the period of 2007–2013.
A national strategy was prepared for using structural instruments in 2007–2013, which is a strategic framework document that acts as a basis for implementing structural instruments. In order to carry out the strategy, socio-economic partners cooperated with the European Commission in order to compile an operational programme, the performance of which will be managed by the following ministries:
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Operational Programme for Humans Resources Development (Ministry of Education and Research) The volume of the operational programme was over 391 million euros, and it includes plans for the 2007–2013 supporting activities concerning education, R&D, youth work, labour market, entrepreneurship, and increasing administrative capacity, which promote development towards a knowledge-based economy and society. The activities are financed from the instruments of the European Social Fund (ESF).
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Development of administrative capacity (Ministry of Finance). In order to improve the governance of Estonia, the European Social Fund has supported training and development of the Estonian officials and associations, as well as studies that are of national importance with about 21.6 million euros during 2007–2013.
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Operational Programme for the Development of the Living Environment (Ministry of the Environment). The operational programme included the infrastructure of water management and waste management, and the development of infrastructures and support systems of sustainable use of environment, education, health care, and welfare. The support of about 1.4 billion euros that was distributed from the operational programme originated from the European Regional Development Fund (ERDF) and the Cohesion Fund (CF).
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The Operational Programme for the Development of Economic Environment (Ministry of Economic Affairs and Communications). The operational programme included the support for the development of enterprises and increase in productivity; the development of R&D capacity, tourism, and creative industries; the development of national R&D programmes that are aimed at long-term economic development and the launch of national programmes concerning priority axes; development of transportation infrastructure and information society. The volume of the operational programme exceeds 1.6 billion euros and the support comes from the European Regional Development Fund and the Cohesion Fund.
During the period of 2004–2006, it was possible for Estonia to use more than 370,000 euros of structural support, which was complemented by more than 123,000 euros of own contribution. The support was allocated from four structural funds:
- The European Social Fund (ESF, volume over 69 million euros), which was primarily aimed at increasing employment and developing labour market.
- The European Regional Development Fund (ERDF, volume about 233 million euros), which supports economic development and the creation of new jobs.
- The European Agricultural Guidance and Guarantee Fund (EAGGF, volume about 57 million euros), which supports the restructuring of agriculture and rural life.
- The Financial Instrument for Fisheries Guidance (FIFG, volume 12.5 million euros), which supports the development of the fisheries sector.
Estonia used up to 99.2% of the support, which amounts to over 368 million euros.
Within three years, a total of 13,710 new jobs were created, 1,886 enterprises received support, and 95 kilometres of roads were built and renovated with the support of the EU. Additionally, the structural support was used to establish 835 new enterprises, a total of 30,578 unemployed persons were involved in active labour market measures, and two hospitals were modernised.
Last updated: 18.05.2026
