EU Regional Policy. Realities and Perspectives on the Absorption of European Funds

EU expansion to 27 Member States has generate challenges in terms of its competitiveness and internal cohesion. The already existing disparities between the Member States and among their regions have deepened. These disparities are generated by the structural deficiencies in key factors of competitiveness, i.e. inadequate endowment with physical and human capital (infrastructure and workforce), insufficient capacity for innovation, business support and low level of environmental capital (natural environment and / or urban pollution). The purpose of the paper is to determine whether the cohesion policy reduced or increased the disparities between regions. Therefore in order to achieve this goal of the cohesion policy, the Member States and regions need significant financial help to solve various structural problems and achieve their potential of growth.