Provides funding to reduce regional development disparities in Europe.
The European Regional Development Fund (ERDF) is a key financial instrument of the European Union's cohesion policy, aimed at reducing disparities between the levels of development of European regions and improving living standards in the least-favored regions. It was established in 1975 and operates under Articles 174 to 178 of the Treaty on the Functioning of the European Union (TFEU). The ERDF focuses on several areas, including innovation and research, the digital agenda, support for small and medium-sized enterprises (SMEs), and achieving a low-carbon economy. For the 2021-2027 period, the ERDF has five policy objectives: a Smarter Europe, a Greener Europe, a more Connected Europe, a more Social Europe, and a Europe closer to citizens. The ERDF has allocated more than EUR 370 billion for the 2021-2027 period, with an additional EUR 47.5 billion from the Next Generation EU fund. The funding is distributed through national and regional operational programs and European Territorial Cooperation programs. Projects must comply with European Union competition law and state aid rules. Recent projects include initiatives like the Urban Innovative Actions (UIA) and the European Urban Initiative, which support sustainable urban development and circular economy projects. Criteria for receiving funding include alignment with the ERDF's policy objectives, contribution to regional development, and adherence to EU legal requirements. Specific project financing amounts vary depending on the program and region. Examples of funded projects include the 'La Financière Région Réunion' (FRR) fund of funds, which supports SMEs in the La Réunion region of France, and various projects in Scotland aimed at promoting business growth, innovation, and low-carbon development.