Public Funding Framework

Public Funding Framework

Source of Funds

Most incentives are funded through the financial resources provided by the European Union (EU). The German government and the federal states also provide their own funds.

The amount of the financial resources provided for European wide distribution is set by the EU for several years in funding periods in line with uniformly implemented regulations in accordance with European competition rules. The EU also defines structural and thematic priority funding areas that may receive funding.

Incentive Allocation in Germany

The main portion of the available incentives funds is administered independently by the EU member states receiving the funds.

  • In Germany incentive allocation is organized at the federal and federal state level through incentives institutions. They are in charge of administering EU as well as German government funds.

Only a small portion is managed by the European Commission in Brussels.

  • Incentives funds centrally administered by the EU commission must be applied for at the commission’s executing agencies. In Germany, so called “national contact points” offer application support, especially when it comes to EU R&D funds applications.

Germany Trade & Invest’s incentives experts will assist you in identifying the appropriate incentives institution.

Different Instruments

A number of different funding instruments - including, for example, cash incentives, interest-reduced loans, public guarantees, and public equity programs - are available subject to the funding objective. Incentives are allocated to investors through different incentives programs available at the federal and federal state level.

For more information please refer to:


Friedrich Henle Friedrich Henle | © GTAI/Illing & Vossbeck Fotografie

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Michael Schnabel Michael Schnabel | © GTAI

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Michael Schnabel

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