Structural funds

The European Union's economic policy financial instrument is designed to finance actions aimed at reducing development disparities between regions, thereby contributing to economic, social, and territorial cohesion. Aid is channeled through five funds: – the European Regional Development Fund (ERDF), which promotes balanced development across EU regions; – the European Social Fund (ESF), which supports employment-related projects; – the Cohesion Fund (CF), which finances transport and environmental projects in countries with lower gross national income; – the European Agricultural Fund for Rural Development (EAFRD), which focuses on addressing specific problems in rural areas of the EU; and – the European Maritime and Fisheries Fund (EMFF), which helps fishermen practice sustainable fishing and coastal communities diversify their economies, improving the quality of life in European coastal areas.