Introduction

The structural and cohesion policies of the European Union (EU) are important for the economic and social integration of Europe. They are among the most significant areas of EU action in many respects. They have a direct impact on the lives of millions of citizens and may help to make the concept of Europe more relevant and meaningful to ordinary people. Annual expenditure on the Structural and Cohesion Funds has risen substantially in recent years and will reach 30 billion ecu by 1999. This will amount to 36 per cent of the Community budget, second only to agriculture. As the only major sphere of EU policy with explicit geographical targeting of resources, they are the main mechanism for tackling the large regional and social disparities within Europe by funding investment in long-term development projects. They also play an important political role in helping to compensate less developed parts of the Union for the adverse effects of exposure to competition from more advanced economies and giving something back to Member States which are net contributors to the EU budget. In several countries the value of EU subventions in this field now exceeds national expenditure on regional assistance.