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Cohesion Fund
The Cohesion Fund was set up the by the European Union in 1994 in order to speed up economic, social and territorial convergence among regions and Member States. It is aimed at countries whose GDP per inhabitant is less than 90% of the Community average.
The Cohesion Fund finances environment and transport infrastructure projects with the purpose to narrow the development disparities. The financial assistance of the Cohesion Fund is subject to certain conditions. If the public deficit of a beneficiary Member State exceeds 3% of national GDP, and the deficit has not been brought under control, aid can be suspended by a Council decision.
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