Provides funding to promote regional development and cohesion.
The European Regional Development Fund (ERDF) is a key financial instrument of the EU's cohesion policy, aimed at reducing economic disparities between regions and promoting balanced development across the EU. Established in 1975, the ERDF focuses on strengthening economic, social, and territorial cohesion by investing in infrastructure, innovation, and sustainable urban development. For the 2021-2027 period, the ERDF has been allocated approximately €226 billion. Its main priorities include fostering innovation and research, supporting small and medium-sized enterprises (SMEs), promoting a low-carbon economy, and enhancing digital connectivity. The fund also addresses specific challenges faced by outermost and sparsely populated regions. ERDF co-financing rates vary depending on the region's development level, ranging from 50% for more developed regions to 85% for less developed ones. While project sizes can vary significantly, the fund typically supports initiatives that align with regional smart specialization strategies and contribute to sustainable economic growth. Eligibility criteria include compliance with EU regulations, alignment with regional development priorities, and demonstration of economic impact. Recent beneficiaries include research institutions, SMEs, and local authorities across various sectors, from renewable energy projects to urban regeneration initiatives.