TheEuropean Regional Development Fund (ERDF) is one of theEuropean Structural and Investment Funds allocated by theEuropean 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, theEuropean Commission occasionally tried to establish a regional fund, but only Italy ever supported it. Britain made it an issue for itsaccession in 1973, and pushed for its creation at the 1972 summit in Paris. Britain was going to be a large contributor to theCAP and theEEC 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 the1973 oil crisis delayed it, and it was only established in 1975 under considerable British and Italian pressure.[1]
It started with a budget of 1.4 billionunits 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 withSingle European Act and is now in its 2014–2020 period.
As part of its task to promote regional development, the ERDF contributes towards financing the following measures:
All awards of ERDF must comply withEuropean Union competition law (including State Aid Law[2] andGovernment procurement in the European Union). Failure to comply with these legal requirements may result in irregularity rulings[3] which carry financial implications.
One project supported by the Fund is the Golf Club Campo de Golf in the African SpanishexclaveMelilla, located right next to the border with Morocco where African migrants regularly attempt to enter the territory of the EU by climbing a triple fence with razor wire. In 2009,Ecologists in Action called the location insulting and asked the EU to investigate why more than €1.1m was given to the project by the ERDF. The petition was dismissed, because the objectives of the golf course to “increase tourism, create jobs and promote sport and sporting values” was compatible with the goals of the ERDF.[4]
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