Regional policy

The regional policy accounts for a large portion of the EU's budget. The two structural funds, the European Regional Development Fund, the European Social Fund, and the Cohesion Fund finance the regional policy.

The Community has established guidelines concerning regional policy and Member States draw up their own cohesion policies based on these guidelines. The strategic guidelines focus on the improving the attractiveness of regions and cities in the Member States, encouraging innovation, entrepreneurship and growth in the knowledge economy, and creating more and better jobs.

Objectives for the regional policy 2007-2013

Three new objectives replace the nine objectives from the period 2000-2006; The Convergence objective, the Regional Competitiveness and Employment objective and the European Territorial Cooperation objective.

The Convergence objective concerns the lesser developed Member States and regions with a GDP lower than 75% of average GDP of the Union. Actions financed within the Convergence objective work toward reducing disparities between the respective regions in the EU. The European Regional Development Fund, the European Social Fund and the Cohesion Fund finance these actions.

The Regional Competitiveness and Employment objective aims to strengthen regional competitiveness and attractiveness and promote job creation. Four priorities have been identified: increasing the adaptability of workers and enterprises, enhancing the access to employment and increasing participation in the labour market, reinforcing social inclusion and combating discrimination, and mobilising reforms in the fields of employment and inclusion. It is financed by the two structural Funds.

The European Territorial Cooperation objective is built on the Community Initiative INTERREG (ending 2006) and supports cooperation at a the cross border, transnational and interregional levels. Actions within this objective aim to promote joint solutions to common problems between neighboring authorities in order to ensure harmonious and balanced development throughout the Union. The European Regional Development Fund finances this objective.

More information:
DG Regional Policy