Project co-financing is the recipient's mandatory share of own resources in the total eligible expenditure of a project supported from EU funds. Its amount depends on the type of applicant, the region and the aid scheme: municipalities and self-governing regions generally co-finance 8%, state organisations 0%, and businesses according to the aid intensity set by the state aid scheme – often 25 to 60% depending on the size of the enterprise and the place of implementation. The remainder is made up of the contribution from EU funds and the state budget. When submitting the application, the applicant must already demonstrate that co-financing is secured, for example by a bank statement, a loan commitment or a council resolution. Insufficient coverage of own resources is among the common reasons for an application being rejected, so the project's financial plan should be prepared realistically, including a reserve for ineligible expenditure.
See also: Aid intensity.
