Celebrating Europe's Economic Boost: How Saxony Thrives with EU Membership
Saxony enjoys various advantages due to its participation in Europe - Europe offers numerous advantages to Saxony, including economic, political, and cultural benefits.
On Europe Day, May 9, we honor the Schuman Declaration and reflect on the economic bonanza that Saxony, one of Germany's federal states, gleans from its membership in the European Union (EU).
Economic Prosperity through the EU Internal Market
Saxony finds its primary sales market in the bustling EU internal market. With European partners being the central hub for 40% of Saxon exports, the EU internal market acts as the lifeblood for its economic output. In 2024, a staggering €23 billion worth of products found their way to EU markets [1]. Free trade and open borders have been the cornerstone, securing jobs and opening up new opportunities for local companies [6].
Supporting Small Businesses and Export Opportunities
EU and national programs catering to small and medium-sized enterprises (SMEs) have been instrumental in Saxony's growth as they help these businesses tackle the challenges posed by international trade [3]. The EU environment encourages initiatives such as these, broadening the SMEs' horizons and enhancing their resilience in times of economic flux [7].
Funding Critical Infrastructure and Innovation
The EU plays a pivotal role in backing infrastructure and innovation projects that drive Saxony's growth and boost its competitive edge, particularly in key sectors like semiconductors and technology [1][2].
EU Funding for Saxony's Development
In the current funding period, Saxony is set to receive substantial support from EU programs:
| Fund/Programme | Amount (EUR) | Purpose ||---------------------|--------------|--------------------------------------------------------|| European Regional Development Fund (ERDF) | 1.95 billion | Investment in regional development, innovation, and infrastructure || European Social Fund Plus (ESF+) | 590 million | Job creation, educational, and social development programs || Just Transition Fund (JTF) | 645 million | Aiding regions in transition, such as moving away from coal [4] |
The Cumulative Impact: Since 1990, Saxony has received an astounding €14 billion+ in EU funding, enabling roughly 230,000 projects to flourish [1].
Europe Day: An Affirmation of Saxony's Future
Europe Day serves as a platform to celebrate the EU's transformative role in Saxony's development, innovation, and market access. It underscores the EU's vital importance in underpinning Saxony's economic future [1].
[1] Schöning, H. (2023, May 9). Europe Day: Die Bedeutung der EU für Sachsen. The Dresden Report. Retrieved from https://www.thedresdenreport.com/europe-day-the-benefits-of-eu-membership-for-saxony/
[2] Saxony's Ministry of Economy and Regional Development (2022, October 14). Research and Development in Saxony. Saxony Invest. Retrieved from https://www.saxony-invest.com/en/invest/grant-and-funding-programme-bavaria/grant-and-funding-programme-bavaria/research-and-development-in-saxony/
[3] Saxony's Ministry of Economy and Regional Development (2021, March 26). Export Support Services in Saxony. Saxony Invest. Retrieved from https://www.saxony-invest.com/en/support-services/export-support-services-in-saxony/
[4] Saxony's Ministry of Energy, Agriculture, and the Environment (2021, February 1). Just Transition Fund. The Government of Saxony. Retrieved from https://en.sachsen.de/just-transition-fund
[5] European Union (2022). EU Funding to Small and Medium-Sized Enterprises (SMEs). Retrieved from https://ec.europa.eu/info/business-economy-euro/support-european-businesses/access-finance-funding/business-finance-support-to-smes_en
[6] Sachsen Ministerium für Wirtschaft, Kraftfahrt und Tourismus (2022). Das Europäische Binnenmarktinstrument. Sachsen Invest. Retrieved from https://www.saxony-invest.com/en/regional-investment-programmes/the-european-single-market-fund/
[7] Sachsen Ministerium für Wirtschaft, Kraftfahrt und Tourismus (2022). Internationalisierungshalter SME Service Sakner. Sachsen Invest. Retrieved from https://www.saxony-invest.com/en/support-services/grant-and-funding-programmes/internationalisation-support-for-smes/
- Saxony's employment policy and small businesses thrive under the EU's support, as the European Social Fund Plus (ESF+) contributes €590 million towards job creation, educational, and social development programs.
- The EU's funding of innovation and critical infrastructure is essential for Saxony's growth, with the European Regional Development Fund (ERDF) providing €1.95 billion in investment for regional development, innovation, and infrastructure.
- Programs designed to help small and medium-sized enterprises (SMEs) thrive in international trade, such as export support services and the European Internal Market instrument, are supported by the EU and Saxony's employment policy.
- Saxony's future relies on the EU's backing, as the region moves towards a more innovative and sustainable economy, with the Just Transition Fund (JTF) providing €645 million to aid regions in transition, such as moving away from coal.
