European Regional Development Fund (ERDF)

The European Regional Development Fund (ERDF) is a key financial instrument of the EU's cohesion policy, aimed at reducing economic and social disparities between regions. For the 2021-2027 period, the ERDF has a budget of €226 billion to support investments across all EU regions. The ERDF focuses on five main priorities: a smarter Europe through innovation and digitalization; a greener, low-carbon Europe; a more connected Europe with strategic transport and digital networks; a more social Europe delivering on the European Pillar of Social Rights; and a Europe closer to citizens by supporting locally-led development strategies. Funding is available to public bodies, private sector organizations, universities, associations, NGOs, and voluntary organizations. The amount of financing varies greatly depending on the project and region, with less developed regions receiving higher co-financing rates. Key criteria for receiving funding include alignment with ERDF priorities, demonstrable impact on regional development, and adherence to EU regulations. Projects must also typically secure matching funding from national or regional sources. Recent ERDF-supported initiatives include the development of research facilities in Poland, sustainable urban mobility projects in Spain, and support for SMEs affected by the COVID-19 pandemic across multiple EU countries.