ERDF for 2000-2006

How much is available through ERDF?


Although the programme period ended in 2006, projects which have recently received ERDF will be able to spend until 2008. So much has been achieved already, but it will formally close on 31 December 2008. This will be followed by a final independent evaluation of the programme to point the way for even more success in the new 2007-2008 programme period.

Help from ERDF is limited to projects offering substantial benefits which meet the needs of an area and which would not take place without a grant. England has nine regions designated as receiving Objective 1 or Objective 2 funding. In total, over the period of the 2000-06 programme, £3.4 billion ERDF has been allocated to projects to improve these regions:

£1.2 billion for Objective 1 regions in England
£2.2 billion for Objective 2 regions in England (including £300million for transitional regions)


ERDF is used to provide help towards the project costs. These grants are set at the minimum level required to allow the project to go ahead. As a general rule, however, the EU contributes no more than 50 per cent of the eligible cost, although it can be as much as 75 per cent for projects in Objective 1 regions.

The rest of the funding, known as 'match funding' comes from other sources such as:

Regional Development Agencies (RDAs)
local authorities
government schemes, including the Single Regeneration Budget
other public bodies
private sector


Objectives 1 and 2

ERDF Structural Funds in the 2000-2006 period are allocated by means of two priority objectives. These objectives help businesses expand their activities, create jobs and become more profitable.

Objective 1

Objective 1 promotes the development and structural change of regions whose development is slowed or lagging behind. These regions are entitled to receive the highest level of grants from the EU on condition that their national governments also invest and help to attract more money from private investors.

Objective 2

Objective 2 supports the economic and social conversion of industrial, rural, urban and fisheries areas that face structural difficulties. These regions have high levels of deprivation, not due to a lack of basic infrastructure, but the decline in traditional economic activities. Support is given for business creation, to improve competitiveness and aid survival. In this way, Structural Funds help create a more dynamic economic environment that increases business investment and growth.

Find out more about the 2000-2006 programme in the regions

Community Initiatives

Under the 2000 - 2006 programme, there are four Community Initiatives. These are measures of significant interest to the Community where Structural Funds can be used. Although they are covered by the Structural Funds principles, they need not be limited to the SF Objective areas.

The four Community Initiatives are:-

Interreg III which is designed to encourage cross border and trans-national co-operation in Community Member States
Urban II, which promotes sustainable urban development and city regeneration
Equal which intends to combat inequalities and discrimination in the labour market
Leader + which plans to develop rural areas


Further information on the 2000-2006 ERDF programmes and new Interreg Programmes for 2007-2013 can be found at the following sites:-

North West Europe programme

North Sea Programme

Atlantic Area programme

Interregional Cooperation Programme (Interreg IVC)

INTERACT Programme

For further information on the 2000-2006 Urban II, Equal and Urban + programmes