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European Regional Development Fund

ERDF

General information

Previous name: European Regional Development Fund (ERDF)

Organigram

Introduction

The European Regional Development Fund (ERDF) is one of the main financial instruments of the EUʼs cohesion policy. Its purpose is to contribute to reducing disparities between the levels of development of European regions and to reduce the backwardness of the least favoured regions. Particular attention is paid to regions which suffer from severe and permanent natural or demographic handicaps, such as the northernmost regions with very low population density as well as island, cross-border and mountain regions.

 

Regional development investments will strongly focus on objectives 1 (Smarter Europe) and 2 (Greener, carbon free Europe) of the five main objectives for 2021 – 2027. 65% to 85% of ERDF resources will be allocated to these priorities, depending on Member States’ relative wealth.

Focus of funding for 2021-2027

  • mainly infrastructure projects
  • smart growth
  • green economy
  • connectivity, social issues and local development
  • specifically NOT supported: direct support to large enterprises, airport infrastructure (except in the outermost regions) and some waste management operations (e.g. landfill).

Thematic Priorities

Participating countries

Possible applicants

Target group / Final beneficiaries

Budget

Total Budget for 2014-2020

EUR 223,8 million

Total Budget for 2021-2027

EUR 274,3 million

Increase / Decrease in %

Increase of 22,5 %

Budget per project

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(depending on the call)

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(depending on the call)

Complexity of budget from 1 (easy) to 5 (difficult): 3

Criteria for the complexity of budget (How detailed is the budget, how complex is the documentation, availibility of documentation, etc.)

  • The support documentation is not very complex;
  • There is a lot of information to research and assimilate regarding the implementations and the financial management of the Project.

Tips for applicants on budgeting

  • SCO – Simplified Cost Options;
  • Framework will be shared between all 7 CPR funds through a single rulebook;
  • A specific EU co-financing rate of 80%, increased to 85% for outermost regions, agreed upon in the Common Provisions Regulation

Programme-Specific Tips for Applicants

2-3 lessons learnt in 2014-2020

  • Over 80 criteria for simplification have been added. LINK
  • CF and ERDF regulation will share a common, shorter regulation
  • New criteria for allocation will be added (youth unemployment, low education level, climate change, and the reception and integration of migrants) to better reflect the reality on the ground.
  • long term social and professional integration of migrants will shift from AMIF to ERDF + CF
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Programme Specific Practical Information

  •  At least 30% of financial envelope is expected to contribute to climate measures (compared to 25% for MMF overall)
  • At least 5% of the ERDF allocation for each Member State has to be earmarked for integrated actions for sustainable urban development
  • Cohesion Policy investing in all regions, on the basis of 3 categories (less-developed; transition; more-developed), with different funding rates.

Positive aspects

Negative Aspects

Related Links

  • https://ec.europa.eu/regional_policy/en/2021_2027/
  • https://ec.europa.eu/regional_policy/en/funding/erdf/
  • https://www.europarl.europa.eu/RegData/etudes/BRIE/2018/625141/EPRS_BRI(2018)625141_EN.pdf

DOs and DON'Ts

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DON'Ts

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