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PPMI successfully completes DG REGIO study on performance-based funding models

29 Jul 2025

News
PPMI successfully completes DG REGIO study on performance-based funding models

PPMI | Part of the Verian Group has wrapped up the DG REGIO-commissioned project "Performance-based schemes: from the RRF to possible approaches under the ERDF/CF and JTF". Analysing National Recovery and Resilience Plans from 15 Member States, the team identified measures that can inspire Financing Not Linked to Costs (FNLC) schemes under the European Regional Development Fund, Cohesion Fund and Just Transition Fund for 2021-2027.

Using desk research, extensive consultations with DG REGIO’s Transnational Network on Simplification, interviews with national RRF authorities and managing authorities of existing FNLC schemes and relevant European Commission officers, plus an EU-wide workshop with managing and audit authorities, PPMI developed six adaptable FNLC models in the following areas:

  • SME innovation
  • SME digital transition
  • Energy-efficient renovation of residential buildings
  • Expansion of water and sewerage systems
  • Modernisation of railway lines
  • Development of pre-hospital medical infrastructure

The study also provided practical examples of indicators and verification mechanisms used in comparable initiatives, and captured lessons on reducing administrative burden, balancing flexibility with performance, aligning stakeholders and tailoring FNLC schemes to different operation types, offering insights for the future design and implementation of FNLC schemes.