Common Regional Policy

In December 1974, the then nine members of the European Community agreed to set up the European Regional Development Fund (ERDF) to provide aid for problem areas. National definitions of problem areas were used, projects first being vetted by national authorities and then forwarded to Brussels for evaluation and decision. In 1981 the policy was revised, and 20% of the total fund was reserved for areas with very low per capita GDP and very high long-term unemployment. By 1987, the ERDF accounted for 9.1% of the total EC budget. Other EU funds for tackling social and economic problems include the European Investment Bank (EIB) and the European Agricultural Fund.