ABSTRACT
According to the most general definition, regional policy (RP) has to reduce regional or
spatial disparities in economic well-being. The main causes of regional problems are
changes in economic structure-a new industry tends to avoid old industrial areas
(Hall, 1988). Because of extensive transition from the socialist system to a market
economy and restructuring of the economic systems, the situation in Central and
Eastern European (CEE) countries is particularly “demanding a RP response”, including
reforms of territorial and administrative structures, the new RP legislation and the
implementation of spatially targeted incentives (Bachtler & Downes, 1999, p. 793).
