European Regional Development Fund financial definition of European Regional Development Fund
European Regional Development Fund
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European Regional Development Fund (ERDF) an organization established by the EUROPEAN UNION in 1975 to provide financial assistance to impoverished areas of the EU. The ERDF has provided cash grants for a broad spectrum of projects in areas of industrial decline, ranging from tourism infrastructure in Wales to a regional airport in Lorraine, France. Support for such projects remains important, but increasingly under the EU's REGIONAL POLICY programme the ERDF's work has focused on supporting the ASSISTED AREAS (i.e. regions and localities where GDP per capita is significantly lower than the EU average). In these areas the ERDF supports infrastructure projects, such as roads, railways, electricity and gas distribution, and provides funds to modernize traditional industries and establish new ones. See EUROPEAN INVESTMENT BANK.