The FOCEM is a fund destined to finance projects to promote structural convergence; develop competitiveness; promote social cohesion, particularly in smaller economies and less developed regions, and support the functioning of the institutional structure and the strengthening of the integration process. 

It is the first solidarity financing mechanism of the MERCOSUR countries and its objective is to reduce the bloc's asymmetries. The funds are earmarked for the countries and delivered as a non-reimbursable donation to finance up to 85% of the eligible value of the projects presented by them.