EU cohesion policy — the three principle funds

The European Regional Development Fund (ERDF)concentrates its intervention on innovation and research, the digital agenda, support for small and medium-sized enterprises (SMEs) and the low-carbon economy. The resources allocated to each of these priorities depends upon the region — for example, in more developed regions, at least 80 % of any funding should focus on at least two of these priorities, whereas in less developed regions this share falls to 50 %.

The European Social Fund (ESF) aims to improve employment and education opportunities, as well as the situation of the most vulnerable people (for example, those at risk of poverty). During the period 2014–2020 the ESF will focus on supporting four thematic objectives: promoting employment and supporting labour mobility; promoting social inclusion and combating poverty; investing in education, skills and lifelong learning; enhancing institutional capacity and an efficient public administration.

The Cohesion Fund supports investment in the environment, trans-European networks and other infrastructure projects, through a focus on the following areas: the shift towards a low-carbon economy; promoting climate change adaptation and risk prevention; preserving and protecting the environment and promoting resource efficiency; promoting sustainable transport and removing key bottlenecks in network infrastructures; enhancing institutional capacity. It is subject to the same rules of programming, management and monitoring as the ERDF and ESF.

Cohesion policy funding for the period 2014–2020 is foreseen to be almost EUR 352 billion — equivalent to almost one third (32.5 %) of the EU's total budget during this period. A raft of policy reforms have been designed with the aim of ensuring maximum impact for this strand of EU funding, with the lion's share of cohesion policy funding targeted at those regions with relatively low levels of economic development.

For more information: Directorate-General for Regional and Urban Policy — cohesion policy for 2014–20