European Development Fund

a financial organization within the structure of the European Economic Community (EEC).

Resources of the European Development Fund are generated from dues of the member countries of the EEC and are earmarked for implementation of free financing for the associated countries (the 33 states that in 1969 had the same tariff system as that operating within the EEC itself because of their special economic and political links with the member countries of the EEC). Dues of the EEC member countries to the European Development Fund are paid in the following shares: Belgium, 9 percent; Italy, 12 percent; Luxembourg, 2 percent; the Netherlands, 9 percent; France, 34 percent; and the Federal Republic of Germany, 34 percent. Resources of the European Development Fund are used to finance projects of national importance and infrastructures (such as roads, airports, and means of communication), to render technical assistance associated with investments of the EEC member countries, and to fund research on the development and diversification of economic structures. As distinguished from the European Investment Bank, the European Development Fund finances projects that make little or no profit.

The European Development Fund began operating in 1959. From 1959 to 1963 total expenditures amounted to $581 mil-lion. From 1964 to 1969, $730 million was allocated, including $50 million as long-term (40-year) loans from the European Investment Bank and the remaining amount as outright allocations. The allocation for 1970-74 was $1 billion.