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Glossary of summaries

European Development Fund

Created by the Treaty of Rome in 1957, the European Development Fund (EDF) is the EU's main instrument to finance development cooperation with African, Caribbean and Pacific (ACP) countries and overseas countries and territories (OCTs).

The EDF finances any project or programme, which contributes to the economic, social or cultural development of the countries in question. It also funds regional cooperation and integration programmes.

The EDF uses several types of financing, including grants, procurement contracts, and financial instruments, such as loans, guarantees, equity or quasi-equity, investments or participations, risk- sharing instruments.

The EDF is funded by EU countries and has not yet come under the EU's general budget, even though a heading has been reserved for it in the budget since 1993. The EDF will continue to fund development cooperation with ACP States and OCTs for the period 2014-2020.

The 11th EDF (2014-2020) has been allocated € 30.5 billion; in addition, € 2.6 billion will be made available by the European Investment Bank in the form of loans from its own resources.