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.
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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
- Development & Cooperation
- Agriculture & Rural Development
- Employment, Social Affairs & Inclusion
Participating countries
- EU27
Possible applicants
- NGOs
- Social Enterprises
- Health Institutions
- Care Institutions
- Research Institutes
Target group / Final beneficiaries
- SMEs
- NGOs
- Public administration
- Universitites
- Entrepreneurs
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)
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
- Â 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
- up to 85% financing from ERDF in less developed regions
Negative Aspects
- only up to 50% financing from ERDF in highly developed regions
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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