European Regional Development Fund often referred to as ERDF is focused on reducing economic disparities within and between member states by supporting economic regeneration and safeguarding jobs.
What is ERDF?
The European Regional Development Fund (ERDF) is focused on reducing economic disparities within and between member states by supporting economic regeneration and safeguarding jobs.
What is it for?
European Regional Development Fund (ERDF) provides finance for:
- investments in companies (in particular SMEs) to create sustainable jobs;
- infrastructures linked notably to research and innovation, telecommunications, environment, energy and transport;
- financial instruments (capital risk funds, local development funds, etc.) to support the regional and local development and to foster cooperation between towns and regions;
- technical assistance measures.
The ERDF’s priorities in 2007-2013 were to:
- support innovation and the knowledge-based economy
- stimulate enterprise and support successful businesses
- ensure sustainable development, production and consumption
- build sustainable communities
How does European Regional Development Fund work?
Funding is managed in 3 strands:
- Convergence
- Regional competitiveness and employment
- European territorial co-operation
Convergence
This applies to Cornwall and Isles of Scilly only as it has a gross domestic product (GDP ) below 75{3483f31c86e75f31cac7f7389ecca029616bd15227fb3fb90c677a439131696c} of the EU average.
Go to the Convergence in Cornwall website.
Regional competitiveness and employment
This funding is aimed at strengthening the region’s competitiveness and increasing employment. There are 9 regional competitiveness and employment programmes in England with different levels of funding dependent on the relative need to support economic regeneration through projects in the areas of innovation, business support and sustaining communities.
European territorial co-operation
The Territorial Cooperation programmes encourage cross-border, transnational and inter-regional cooperation and harmonious and balanced development of the European territory.
The priorities are economic competitiveness, development, creating attractive regions to live and work in, sustainable environmental development, promoting a safe and healthy environment.
The UK participates in 9 European territorial cooperation programmes which are
- 6 Interreg programmes
- INTERACT
- URBACT
- ESPON
Read more about European Territorial Cooperation Programmes on the DCLG website.
How can my organisation apply for ERDF?
The Managing Authority of the fund in England is the Department for Communities and Local Government (DCLG).
ERDF is aimed at regeneration projects promoted primarily by the public sector involving the following:
- Government departments
- Local Enterprise Partnerships
- Local authorities
- Further and higher education establishments
- Other public bodies
- Volunteer sector organisations
How much money is available?
A total of €3.2 billion is available for financing operations under the Convergence and Regional Competitiveness and Employment objectives for the period 2007-2013. As with other EU structural funds, it will be match-funded by other sources such as local authorities, government schemes, other public bodies and the private sector. At present ERDF in the Regional Competitiveness and Employment, regions will be co-financed at 50{3483f31c86e75f31cac7f7389ecca029616bd15227fb3fb90c677a439131696c} and in Convergence region at 75{3483f31c86e75f31cac7f7389ecca029616bd15227fb3fb90c677a439131696c}.
Region Allocation (€ Million)
- East of England 110.9
- East Midlands 268.5
- London 181.9
- North East 375.7
- North West 755.5
- South East 124.7
- West Midlands 399.9
- Yorkshire & Humber 583.6
- South West 124.7
- Cornwall & Isles of Scilly (Convergence) 458.1
Future ERDF 2014-2020
The Common Strategic Framework sets out 11 thematic objectives for the new structural funds.
In the UK, at least 80{3483f31c86e75f31cac7f7389ecca029616bd15227fb3fb90c677a439131696c} of the funding allocated at national level needs to be allocated to 4 themes:
- Research and Innovation
- SME competitiveness
- Low carbon and energy efficiency
- ICT
A minimum of 5{3483f31c86e75f31cac7f7389ecca029616bd15227fb3fb90c677a439131696c} of ERDF resources will be earmarked for sustainable urban development.