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European Regional Development Fund (ERDF)

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The European Regional Development Fund (ERDF) is a key instrument designed to strengthen economic, social, and territorial cohesion within the European Union. It aims to correct regional imbalances by promoting investments that make Europe smarter, greener, more connected, and more social, ultimately bringing the EU closer to its citizens.

Funding Management

The ERDF is managed through a shared responsibility model between the European Commission and the national and regional authorities of Member States. These national administrations select and manage the funded projects.

Funding Priorities for 2021-2027

  1. Competitiveness and Innovation: Support for small and medium-sized businesses, innovation, digitization, and digital connectivity.
  2. Green Transition: Investments to achieve a low-carbon and resilient economy.
  3. Enhanced Mobility: Improvements in transport and connectivity.
  4. Social Inclusion: Support for employment, education, skills development, social inclusion, healthcare access, culture, and sustainable tourism.
  5. Proximity to Citizens: Support for locally-led and sustainable urban development.

Thematic Concentration

  • Policy Objectives:
    • PO1: A more competitive and smarter Europe.
    • PO2: A greener, low-carbon, and resilient Europe.
  • Allocation Requirements:
    • All regions must allocate at least 30% of their funding to PO2.
    • More developed regions must allocate at least 85% to PO1 and PO2.
    • Transition regions must allocate at least 40% to PO1.
    • Less developed regions must allocate at least 25% to PO1.
    • Additionally, at least 8% of allocations must be dedicated to urban development.

Climate Objectives: ERDF operations are expected to contribute 30% of overall financing towards climate objectives.

ERDF: The European territorial Cooperation (INTERREG)

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INTERREG (INTERREGional Cooperation goal) is the EU’s tool for fostering cooperation across regions and countries. It funds collaborative projects involving EU Member States, their outermost regions, EU acceding countries, and neighboring countries.

Interreg is financed by ERDF. The ERDF resources for Interreg programmes shall amount to € 8.050 billion 2018 prices of the global resources available for budgetary commitment from the ERDF, ESF+ and the Cohesion Fund for the 2021-2027 programming period and set out in Article 109(1) of Regulation (EU) 2021/1060.

Key Objectives for 2021-2027

  1. Cross-Border Mobility and Services: Support for environmental protection, emergency services, skilled job creation, and access to public services.
  2. Better Cooperation Governance: Enhancing governance structures for improved territorial cooperation.
  3. A Safer, More Secure Europe: Addressing security and safety challenges across regions.

Types of Cooperation

  • Cross-Border Cooperation: Along all EU land and maritime borders.
  • Transnational Cooperation: Including macro-regional strategies and sea basin initiatives.
  • Interregional Cooperation: Facilitating network building and experience sharing among regions.

Global Impact

  • Interreg NEXT: Partners with Eastern and Southern Neighbourhood countries.
  • Interreg Outermost Regions: Strengthens relations between the EU's remote regions and their neighbors.
  • Interreg IPA: Enhances cooperation between Member States, Western Balkan countries, and Turkey, helping acceding countries manage programs like Member States.

Post-2020 Simplifications

  • Simplified Rules: Clearer, shorter, and fewer regulations.
  • Reduced Red Tape: Easier access for businesses and organizations.
  • Streamlined Implementation: More efficient program execution.

Focus on Green and Digital Recovery: Interreg supports a green and digital recovery from the coronavirus pandemic, aiming for sustainable growth and competitiveness while ensuring inclusivity.

ERDF: Specific Territorial Characteristics

The ERDF also gives particular attention to specific territorial characteristics. ERDF action is designed to reduce economic, environmental and social problems in urban areas, with a special focus on sustainable urban development.

At least 8 % of the ERDF resources are set aside for this field through territorial or local development strategies, i.e. Integrated Territorial Investment (ITI), Community-led Local Development (CLLD) but also tools supporting similar initiatives designed by Member States.

Areas that are naturally disadvantaged from a geographical viewpoint (remote, islands, mountainous or sparsely populated areas) benefit from special treatment and Member States can set out integrated approaches and dedicate funds to these areas.

The outermost regions of the EU also benefit from specific assistance from the ERDF to address disadvantages due to their remoteness.

Structural and investment funds for regional and urban development projects

List of EU financial instruments for regional and urbandevelopment: