Dynamic Brandenburg

In the Federal Republic of Germany each federal state is responsible for its own regional economic development. And in the state of Brandenburg economic development comes at the very top of the agenda. Brandenburg is the first German federal state to set up a “one-stop agency“ as a focal point for investors, enterprises and technology-oriented start-ups - the Brandenburg Economic Development Board (ZAB). What is more, entrepreneurs have learnt to appreciate its partner, the Investment Bank of the State of Brandenburg (ILB), for its competent professional advice and support, and its fast tracking of their funding applications.

In Brandenburg the future is a tangible asset. Investment premiums are used to promote start-up investment in the manufacturing sector and in production-related services.

Major concerns wishing to invest in Brandenburg can receive up to 35% subsidies and investment grants from the “Improvement of Regional Economies“ programme, part of the Federal-Länder Joint Action Programme (GA). Small and mid-sized enterprises can even claim up to 50% in subsidies and grants.

Further grants and subsidies are offered by the European Union with the joint aims of narrowing the development gap between different regions in Europe, promoting equitable and sustainable development, and enhancing economic and social cohesion. To be eligible for EU funding companies must show a high level of competitivity, a high employment level, a concern for environmental factors, and equal opportunity between men and women. The EU earmarks no less than one third of its Community budget for such goals. In the period 2000 - 2006 EU-15 states will receive total funding to the tune of Euro 213 billion. The lion’s share of these subsidies comes from the three major structural funds which have a particular relevance for Brandenburg: the European Regional Development Fund (ERDF); the European Social Fund (ESF); and the Guidance Section of the European Agricultural Guidance and Guarantee Fund (EAGGF).

As a Objective 1 area for European regional development Brandenburg can lay claim to the highest level of promotion. In the current 2000-2006 development period it will receive a total of close to Euro 3 billion from the structural funds. Euro 1.7 billion alone comes from the ERDF.