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This research evaluates the management efficiency of the European Structural Funds according to whether their productive orientation is based on employment or on economic and social development. The data refers to 2000–2020 for the 28 EU countries. The paper includes an analysis of the influence of the country's governance and economic freedom on the production function associated with the funds received. The results show that there is a technological gap between groups of countries defined by their goodness of governance. On the other hand, there is a positive relationship of economic freedom and the efficiency scores of the countries. [ABSTRACT FROM AUTHOR]