The European Regional Development Fund (ERDF) is one of the main financial instruments of the European cohesion policy. It was established in 1975 with the goal to bridge the gap between the development levels of the European regions, improving living standards in the less‑favored regions. Special attention is given to regions that suffer from severe and permanent natural or demographic handicaps, such as the northernmost regions with very low population density and island, cross-border, and mountain regions.