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What is the purpose of an exhaust gas recirculation valve in an Audi A2?

I recently purchased a used Audi A2 and noticed that it has an exhaust gas recirculation valve. Can someone explain to me what this valve does and why it's important for my car's performance?

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The exhaust gas recirculation valve, or EGR valve, is an important component in your Audi A2's emissions control system. It helps to reduce the amount of pollutants released from your car's exhaust by recirculating a portion of the exhaust gases back into the engine to be burned again.

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The EGR valve is also responsible for helping your car's engine run more efficiently by controlling the amount of oxygen that enters the combustion chambers. This can improve fuel economy and reduce engine knock.

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