This chapter evaluates the nature and significance of the new regionalism from an economic perspective, taking into account the fact that non-economic factors also provide major incentives for regionalism. Regionalism arises from the existence of local grievances, which are translated into demands that may or may not be addressed adequately by regional policies. In reponse to the demands of people for greater participation in and management of their own affairs, most Western European governments have granted more decision-making powers to regional authorities. Moreover, the new regionalism is not an artificial growth but is, on the contrary, typically rooted in cultural realities that predate the nation-states of modern Europe. Regionalism in five Western European countries – France, Spain, Belgium, Great Britain, and Italy – and in the Soviet Union is discussed in detail. A European Regional Development Fund was established in 1975 by the Commission of the European Communities. Its purpose is to create or save jobs in economically lagging regions.