ABSTRACT
The goal of social and economic cohesion, European Union jargon for ensuring that wide disparities in income do not impede the process of European integration, has become an increasingly important driver behind many aspects of EU policy as integration deepens and changes the geography of Europe. EU regional policy, as in other areas, is designed to improve the environment in which businesses in problematic regions operate. Business location decisions arise from a complex mixture of factors, including market potential, the general macro-economic context, the local labour market (particularly the availability of appropriate skills) proximity to suppliers and to the market, the quantity and quality of infrastructure, the type of activity involved and a miscellany of social, cultural and quality of life factors.
