What is the principle of territoriality?
Structural funds regulations rule out the use of Structural Funds assistance outside the territory of the European Union. This means that a territorial principle applies, excluding in general the possibility for Non Member States to have access to ERDF funds. As a rule, only projects or those parts of projects located physically in CADSES ERDF area may be funded by ERDF Funds Nevertheless there are some exceptions and/or smoother interpretation of this rule. The Commission in its Progress Report on the communication from the Commission on the impact of enlargement on regions bordering candidate countries Community Action for border regions COM (2002)660 of 29.11.