In 1986, the Single European Act introduced the economic and social cohesion objective and the Maastricht Treaty (1992) finally incorporated this policy into the EC Treaty (articles 158 to 162).

The regional policy of the European Union is based on the concepts of solidarity and economic cohesion. This policy comes to life through different financial interventions, in particular, the Structural Funds and the Cohesion Fund.

For the period 2007-2013, the second most important entry in the EU budget corresponds to the EU regional policy, accounting for EUR 347,000 million.

The main criterion for a region to be eligible for EU financing is having a regional GDP below 75% of the Union’s average. Regional development financing is allocated according to the following objectives:

• Convergence objective. Read more. 
• Regional competitiveness and employment objective. Read more.
• European territorial cooperation objective. Read more.

Between 2007 and 2013, regional programmes are being financed by three Funds, according to type of assistance and type of beneficiary.

The European Regional Development Fund (ERDF) provides financing to programmes related to general infrastructures, innovation and investment. Applications for ERDF financing are accepted from the poorest regions in the Member States.

The European Social Fund (ESF) provides financing for professional training projects and other type of professional orientation and employment creation programmes. All Member States may apply for ESF funds.

The Cohesion Fund (CF) provides grants for expenditure related to the environment, transport infrastructures, and projects for the development of renewable energies. Financing under this Fund is only available to Member States whose standard of living is below 90% of the EU average, that is, the new Member States, Portugal, and Greece. Spain has been a beneficiary of Cohesion Funds until recently, and will cease receiving these funds progressively.