PART THREEGENERAL PROVISIONS APPLICABLE TO THE ERDF, THE ESF AND THE COHESION FUND

TITLE VFINANCIAL SUPPORT FROM THE FUNDS

Article 121Modulation of the co-financing rates

The co-financing rate from the Funds to a priority axis may be modulated to take account of:

  1. (1)

    the importance of the priority axis for the delivery of the Union strategy for smart, sustainable and inclusive growth, having regard to the specific gaps to be addressed;

  2. (2)

    the protection and improvement of the environment, principally through the application of the precautionary principle, the principle of preventive action and the polluter pays principle;

  3. (3)

    the rate of mobilisation of private financing;

  4. (4)

    the coverage of areas with severe and permanent natural or demographic handicaps defined as follows:

    1. (a)

      island Member States eligible under the Cohesion Fund, and other islands except those on which the capital of a Member State is situated or which have a fixed link to the mainland;

    2. (b)

      mountainous areas as defined by the national legislation of the Member State;

    3. (c)

      sparsely (i.e. less than 50 inhabitants per square kilometre) and very sparsely (less than 8 inhabitants per square kilometre) populated areas;

    4. (d)

      the inclusion of the outermost regions as referred to in Article 349 TFEU.