“EU funding is indispensable for Saxony’s development. Especially in these geopolitically difficult and uncertain times, the EU’s funding programs make an important contribution to supporting the economic catch-up processes in the EU regions, promoting cutting-edge research, strengthening competitiveness, promoting small and medium-sized enterprises, climate protection, the development of emerging and developing countries and improving the quality of life of all EU citizens. With the help of EU programs, we are providing important impetus for innovation, skilled workers and climate protection. In practical terms, this means that we secure jobs, support the development of new technologies and make regions undergoing structural change fit for the future. ESF Plus, ERDF and JTF ensure that good ideas become reality – whether in training, in the laboratory or in companies,” said Minister of Economic Affairs Dirk Panter.
ESF Plus: Strong demand in 2025 – targeted impetus for start-ups in 2026
Saxony is using the European Social Fund Plus (ESF Plus) to promote employment, training and social innovation. By the end of 2025, around 350 million euros of the available 590 million euros had already been approved – around 62 percent of the funding volume.
More than 2,400 projects are being implemented, with funding for STEM skills development and university cooperation particularly in demand, where more than three quarters of the funds have been committed. Almost 1,500 small and medium-sized enterprises (SMEs) benefited from ESF funding, particularly for training and innovation processes. A total of 10,424 people took part in ESF-funded measures (3,348 women, 7,076 men).
Current examples show impact:
- New training networks in mechanical engineering are being established at Chemnitz University of Technology to retain young talent in the region.
- The “AddWasserstoff” project brings together several departments at TU Bergakademie Freiberg. They are jointly researching new, sustainable materials for hydrogen technology.
- The “Job Coaching for Immigrants” project in Dresden supports people with a migration background in entering the job market and was recognized in 2025 for its successful integration work.
- The ESF Plus-funded TANDEM programme is aimed at long-term unemployed families and single parents in order to increase their chances on the job market and improve their children’s educational pathways at the same time. The entire family household is supported with tailored, networked assistance services.
Outlook: In 2026, the impetus for start-ups and business succession will be increased. The aim is to make start-up support more visible and tap into new employment potential.
EFRE: Broad implementation – focus on climate protection and energy in the coming years
The interim balance for the European Regional Development Fund (ERDF) is also positive. By the end of 2025, around 6,000 projects had been implemented or completed – with a funding volume of over 1 billion euros.
Target: research, innovation and SMEs
With almost 5,000 projects and around 687 million euros in EU funding, sustainable growth, competitiveness and employment in small and medium-sized enterprises are being strengthened. One example of this is the construction of the new vocational school center for electrical engineering in Dresden, which is contributing up to 100 million euros in ERDF funding to implement the European Chips Act and strengthen Saxony’s position as a semiconductor location.
Target: climate, energy and resilience
With 450 projects and over 218 million euros in EU funding, Saxony is investing in climate protection, climate adaptation, modern energy systems, flood protection, sustainable mobility and the renovation and new construction of public buildings. One example is the energy-efficient refurbishment of several school buildings in Zwickau, which saves energy and improves learning conditions. Or the “New European Bauhaus”, which combines sustainability, good design and social integration.
Goal: Sustainable urban development
With 187 projects and a good 66 million euros in EU funding, disadvantaged districts are being strengthened, brownfield sites reactivated, open spaces upgraded and buildings renovated to make them more energy-efficient. The program has been running for almost two decades and has noticeably improved the quality of life in many Saxon cities and municipalities.
Outlook: Until the end of the funding period, ERDF funding in the areas of climate protection, energy efficiency and resilience will provide Saxony with considerable scope for additional projects that will advance the energy transition and make locations future-proof.
JTF: Tailwind for structural change
The EU is supporting regions undergoing structural change with the Just Transition Fund (JTF). In Saxony, this applies to Lusatia, the Central German mining area and the Chemnitz-Zwickau region. Over 1,000 projects have already been approved, and the funding volume exceeded the 315 million euro mark in 2025.
Business angel funding closes the financing gap in early start-up phases and stimulates the start-up ecosystem. To date, there are 115 projects with a funding volume of around 22 million euros. One example is the Chemnitz-based start-up LIMATICA GmbH, which has used JTF funding to develop an innovative measurement method to revolutionize the quality testing of battery cells. This testing is currently a time-consuming and cost-intensive process.
The direct business support program “Regional Growth” has been particularly successful, benefiting small and medium-sized enterprises in particular. So far, 680 projects with a funding volume of 84 million euros have been supported. In Lusatia, for example, new jobs are being created through investments in the battery and recycling industry.
Outlook: From 2026, Saxony will set additional priorities for the circular economy, the promotion of large companies, climate and energy. The upcoming amendment to the directive on the circular economy will enable funding rates of up to 90 percent in future.
In addition, a further call for funding in the area of climate and energy is planned for district heating.
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Further links
👉 www.smwa.sachsen.de
Photo: pixabay
