European Regional Development Fund

The European Regional Development Fund (ERDF) is a fund allocated by the European Union. Its purpose is to transfer money from richer regions (not countries), and invest it in the infrastructure and services of underdeveloped regions. This will allow those regions to start attracting private sector investments, and create jobs on their own. The European Regional Development Fund (ERDF) is a fund allocated by the European Union. Its purpose is to transfer money from richer regions (not countries), and invest it in the infrastructure and services of underdeveloped regions. This will allow those regions to start attracting private sector investments, and create jobs on their own. During the 1960s, the European Commission occasionally tried to establish a regional fund, but only Italy ever supported it. Britain made it an issue for its accession in 1973, and pushed for its creation at the 1972 summit in Paris. Britain was going to be a large contributor to the CAP and the EEC budget, and sought to offset this deficit by having the ERDF established. They would then be able to show their public some tangible benefits of EEC membership. The ERDF was set to be running by 1973, but the 1973 oil crisis delayed it, and it was only established in 1975 under considerable British and Italian pressure. It started with a budget of 1.4 billion units of account, much less than the original British proposal of 2.4 billion units of account, but has increased rapidly both proportionally and absolutely in the course of time. Since its creation, it has operated under changing set of rules that were standardised with Single European Act and is now in its 2014–2020 period.