European Economic Diversity and

The regions of the European Union and the people living in them are not all equally well off in economic and social terms. Because problems of regional development are quite important in members states, especially in new members countries, the EU undertakes effort to ensure that all regions and their citizens can take full and proportionate advantage of the European Single Market. According to article 158 of the Treaty on European Union the Community shall develop and pursue its action leading to the strengthening of its economic and social cohesion in order to promote its overall harmonious development. In particular, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favored regions or islands, including rural areas ( 1). In order to stimulate economic activity in the less developed regions, private– sector investment needs to be supplemented by financed from the EU budget public actions. The EU regional policy has in the budgetary period 2007- 2013 three main goals. The objective 1 of the regional policy is to help less developing regions whose development is lagging behind to catch up more developed European regions. Regions qualify for objective one of regional policy are the regions whose per capita gross domestic product ( GDP) i