EIBURS ProjectDominique Brüser
The European Union supports the economic and social cohesion of the community and the growth and employments in economically weaker regions of Europe within their structural policy. In line with the framework of the European structure funds (especially the EFRE), investments in urban development are eligible for support. So far, mostly non-repayable grants to finance urban development projects are used. The initiative “Joint European Support for Sustainable Investment in City Areas – JESSICA” supplements the previously used financing with new instruments. It creates the possibility to support and finance urban development projects with loans, guarantees and equity capital from urban development funds instead of grants. We develop a model which analyzes macro-economic data and shows which cities are suitable for the use of urban development funds. We examine the value added revolving of the use of urban development funds in comparison to grants. Our project partner, the Faculty of Spatial Planning of the TU Dortmund, examines the micro-economic level of individual urban development projects. The project is supported by the EIBURS-program of the European Investment Bank.