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EU COHESION POLICY

European Regional Development Fund (ERDF)


​The European Regional Development Fund (ERDF), one of the four Cohesion Policy instruments, provides funding to public and private bodies in all EU regions to reduce economic, social and territorial disparities. The Fund supports investments through dedicated national or regional programmes.

2021-2027 Budget:  €226.05 billion
​
The Fund

ERDF is one of the four funds of the Cohesion Policy. The others are: CF, ESF+, JTF.
In 2021-2027, the fund enables investments to make Europe and its regions:
  • more competitive and smarter, through innovation and support to small and medium-sized businesses (SMEs), as well as digitisation and digital connectivity
  • greener, low-carbon and resilient
  • more connected by enhancing mobility
  • more social, supporting effective and inclusive employment, education, skills, social inclusion and equal access to healthcare, as well as enhancing the role of culture and sustainable tourism
  • closer to citizens, supporting locally-led development and sustainable urban development across the EU

Thematics​

​Based on their prosperity, all regions and Member States will concentrate the support on a more competitive and smarter Europe (Policy Objective – PO 1), as well as greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe (PO2), through the mechanism known as 'thematic concentration'.
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​All regions and Member States (MSs) will concentrate at least 30% of their allocation to PO 2 and:
​
  • More developed regions or MSs will dedicate at least 85% of their allocation to PO1 and PO2;
  • Transition regions or MSs at least 40% to PO1;
  • Less developed regions or MSs at least 25% to PO1.

All regions and Member States will also concentrate at least 8% of their allocation to urban development that will be delivered through local development partnerships with different tools.
Operations under the ERDF are also expected to contribute 30 % of the overall financial envelope to climate objectives.
​

​How ERDF is managed

The ERDF is delivered under shared management
. In shared management, both the European Commission and national authorities in Member States, such as ministries and public institutions, are in charge of running a particular programme. Around 70% of EU programmes are run this way.

For instance, if you are a farmer anywhere in the EU, and have a project to start growing organic tomatoes, you would be eligible to apply for funds under the Common Agricultural Policy (CAP). For that, you would have to go through your country's Ministry of Agriculture, or an equivalent institution, which would be in charge of managing the funds for your project on behalf of the EU.
​

The Member States' administrations (at national, regional and local level) choose which projects to finance and take responsibility for day-to-day management. Working together with the Member States, the Commission makes sure that the projects are successfully concluded, and the money is well spent.

The Common Provision Regulation

Local authorities call for projects adapted to their specific needs. It is governed by the Common Provisions Regulation. A common provisions regulation is established to govern 8 EU funds whose delivery is shared with Member States and regions. Together, they represent a third of the EU budget.

The largest share of this budget is allocated to 5 common policy objectives:
​
  1. a more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity;
  2. a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility;
  3. a more connected Europe by enhancing mobility;
  4. a more social and inclusive Europe implementing the European Pillar of Social Rights;
  5. a Europe closer to citizens by fostering the sustainable and integrated development of all types of territories and local initiatives.

Each fund has specific objectives defined in their respective Fund-specific regulations.


​Predecessor Fund

The same

Go to EU Regional  and Urban Development Policy

You will learn the current and forthcoming EU Legislation, the EU strategy to promote the regional dimensions of Europe, the Programmes on all sectorial activities, the funding opportunities and how to apply.
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Go To EU Regional Policy
Source:  European Union, http://www.europa.eu/, 1998-2023
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