Panorama

In the past 50 years—spanning two centuries—the European Union, its citizens, and the world have undergone profound transformations. Through economic crises, political shifts, and successive waves of enlargement, the ERDF has been a constant force, shaping the European project and strengthening its foundations. From the very start, many of the achievements Europeans take for granted today—economic cohesion, the internal market, and the path to monetary union—were embedded in its blueprint.

Although officially launched in 1975, the ERDF’s origins trace back to 1957, when the Treaty of Rome established the European Economic Community (EEC). Even then, it was clear that regional imbalances threatened Europe’s economic and social convergence. A solution was needed—one that could address disparities while reinforcing unity.

The ERDF was conceived as that solution, set to begin alongside the 1973 enlargement that welcomed Denmark, Ireland, and the UK. However, as Europe grappled with the fallout of the oil crisis, the Fund’s launch was delayed until 1975. From day one, it had a dual mission: supporting struggling regions—particularly relevant for Ireland, then the poorest Member State—and revitalizing declining industrial areas, such as those in the UK.

Yet its ambitions reached far beyond regional aid. The ERDF was instrumental in laying the groundwork for economic and monetary union. As Albert Borschette, European Commissioner for Regional Policy (1970–1973), noted: ‘Monetary union isn’t possible if the current disparities and differences between the various regions persist.’

When the ERDF officially began operations in March 1975, it focused on financing investments in small enterprises and mountainous areas, with project selection largely in the hands of national governments. What started as a pragmatic response to economic imbalances would grow into a cornerstone of the European Union—helping Europe weather economic shocks, drive integration, and build the interconnected Union we know today.

Fresh impetus

The first enlargement of the European Community in 1973 had already proven the ERDF’s crucial role in stabilising and integrating new Member States. But it was the 1980s—when Greece, Portugal, and Spain emerged from the shadows of autocratic rule and joined the European family—that truly confirmed the Fund’s strategic importance. At a defining moment in European history, the ERDF was there to say, "pull up a chair", ensuring that democracy’s return to Southern Europe was accompanied by economic opportunity and social progress.

The accession of Greece in 1981, followed by Portugal and Spain in 1986, deepened regional disparities and demanded a stronger, more coordinated approach. The turning point came with the Single European Act of 1986, which laid the legal groundwork for the completion of the Single Market by 1992. Recognising that economic integration could not succeed without social and territorial cohesion, the Act gave the ERDF a renewed mandate to bridge gaps and level the playing field.

"Economic and social cohesion, initially a Commission proposal that was then translated into the Single Act, lay at the heart of the debate," recalled then Commission President Jacques Delors. This principle would become the cornerstone of European integration.

By 1988, the ERDF was fully embedded within a strengthened cohesion policy, structured around key principles that endure to this day: a focus on the poorest regions, multi-annual programming over fragmented project-based funding, strategic investment priorities, and direct involvement of local partners. With this transformation, resources surged, reaching €69 billion for the European Structural and Investment Funds (ESIFs)—including the ERDF—for the period leading up to 1993.

The impact was undeniable. Between 1989 and 1993 alone, ESIF-supported programmes created 600,000 jobs in the four poorest Member States—Greece, Ireland, Portugal, and Spain. GDP per capita in these countries rose from 68.3% to 74.5% of the Community average, illustrating how European solidarity translated into tangible economic progress.

Through these landmark years, the ERDF proved more than just a financial instrument—it became a pillar of European unity, ensuring that enlargement meant not just the expansion of borders, but the strengthening of a truly shared prosperity.

Consolidation and enlargement

Consolidation was the watchword for 1994-1999, when the ESIF budget reached € 168 billion – more than a third of the entire EU budget.

Important developments following the 1992 signature of the Maastricht Treaty – the founding treaty of the EU – were the creation, in 1994, of the Committee of the Regions and the Cohesion Fund. Another came from the 1995 enlargement. Specific support was earmarked for remote regions in Finland and Sweden, which joined along with Austria. These were by far the most sparsely populated Member States.

The period saw GDP growth of 4.7 % in Portugal and 3.9 % in the former East Germany, which had become part of the EEC upon the German reunification in 1990. Also, 700 000 jobs were created, adding almost 4 % to employment in Portugal and 2.5 % in Greece.

In 2000-2006, attention turned to the Lisbon Strategy, aiming to transform the EU into the world’s most dynamic knowledge-based economy. ERDF priorities thus shifted towards jobs, growth and innovation.

In parallel, 2004 saw the biggest enlargement in EU history, when 10 countries joined. During 2000-2004, funding and know-how were provided to those countries through pre-accession instruments.

‘The common interest is to share our progress and extend our area of stability, democracy and economic advancement,’ explained 1999-2004 Commissioner for Regional Policy, Michel Barnier.

Subsequent enlargements made the EU family 20 % bigger but its collective GDP only 5 % larger. To close the gap between the old and new Member States, of the 2000-06 ESIF budget of € 235 billion, € 22 billion was allocated to the new countries for 2004-2006. Of 570 000 jobs created in the poorest regions, 160 000 were in new Member States.

Growth and innovation

For 2007-2013, all EU regions became eligible for ERDF support, while Romania and Bulgaria joined in 2007, and Croatia soon after in 2013.

The focus on jobs, growth and innovation was reinforced, with 25 % of the € 347 billion ESIF budget earmarked for research and innovation. Key achievements were the creation of 1 million jobs and assistance for 400 000 SMEs and 121 000 start-ups.

Commissioner for Regional Policy 2004-2009, Danuta Hübner, said at the time: ‘We need more growth, we need more jobs, we need also a more innovative European economy. And we have discovered that we have huge potential at regional and local level.’

For 2014-20, a few areas with high growth potential were prioritised: research and innovation, SMEs, the digital agenda and the low-carbon economy. Some 1.1 million SMEs were granted funding and 14.5 million households obtained broadband access.

There was greater emphasis on social inclusion and reducing youth unemployment. Around 8.9 million people received help to gain qualifications.

Navigating transition

Much has changed since 1975. What was once the European Economic Community (EEC) has evolved into today’s European Union (EU), expanding from nine to 27 Member States, weathering economic crises, navigating global shocks, and strengthening its unity. The UK has left, but many others have joined. The Single Market has matured, the euro has become a global currency, and Europe has withstood challenges from financial turmoil to a global pandemic. Through it all, cohesion policy—and the ERDF at its heart—has adapted, proving time and again its value as a pillar of European solidarity and stability.

Today, as the EU undergoes another era of profound transformation, the ERDF once again stands at a crossroads. The green and digital transitions demand new strategies. Geopolitical instability, from the COVID-19 recovery to the war in Ukraine, has forced Europe to rethink resilience and autonomy. The very nature of cohesion policy has shifted to accommodate new priorities, becoming more flexible, more responsive, and more attuned to regional realities than ever before.

At its core, the ERDF remains what it was always meant to be: a tool to ensure that no region and no citizen is left behind in Europe’s progress. While regional GDP per capita remains the key criterion for funding allocations, new challenges—youth unemployment, migration, industrial transformation—are shaping the way investments are made. The ERDF has not only adjusted to meet these evolving needs but has done so while staying true to its original mission: strengthening the economic, social, and territorial fabric of Europe.

As calls for greater flexibility echo across the continent, the ERDF’s 50-year legacy stands as proof of its ability to evolve while remaining indispensable. From rebuilding declining industrial regions in the 1970s, to supporting democracy in Southern Europe in the 1980s, to anchoring new Member States in the European project after 2004, it has always risen to the occasion. Now, as the EU faces historic transitions once again, the ERDF will continue to adapt to the needs of the moment—without ever forgetting the communities and regions it exists to serve.

More information

Cohesion Policy 2021-2027

https://ec.europa.eu/regional_policy/policy/what/history_en