The preamble of the Treaty of Rome adopted in 1957, refers to the need 'to strengthen the unity of their economies and to ensure their harmonious development by reducing the differences existing among the various regions and the backwardness of the less-favoured regions'. For this reason, in 1958, two sector-based funds were set up - the European Social Fund (ESF) and the European Agricultural Guidance and Guarantee Fund (EAGGF). In 1975, the European Regional Development Fund was created, aimed at redistributing part of the Community budget to the poorest regions.
In 1986, the Single European Act laid down the basis for a cohesion policy which would offset the single market burden for less developed countries and regions. On this basis, the European Council introduced what is today known as the Structural Funds, allocating ECU 68 billion (at 1997 prices).
The Treaty of Maastricht, which came into force in 1993, pinpointed cohesion as one of the main objectives of the EU and established the Cohesion Fund with a view to supporting projects in the areas of transport and environment in the less prosperous Member States.
In 1993, almost one third of the Community budget was allocated by Edinburgh European Council to the cohesion policy for the budget period of 1994-1999. Furthermore, a new instrument was created namely the Financial Instrument for Fisheries Guidance (FIFG). In March 1999, the Berlin European Council reformed the Structural Funds and adjusted the operation of the Cohesion Fund, gauging Euro 30 billion per annum for the budgeting period of 2000 - 2006.
Alongside the financial instruments for Member States and EU regions, the EU also provided instruments to assist Applicant countries and their regions in terms of economic and social cohesion: the Instrument for Structural Policies for Pre-accession (ISPA), the Special Accession Programme for Agriculture and Rural Development (Sapard), and the Phare programme.
Following the political agreement reached during the Berlin European Council (24 and 25 March 1999) and the approval of the European Parliament (6 May 1999), on 21 June 1999 the Council formally adopted the new Structural Funds Regulations for the period 2000-2006.
These regulations may be accessed via:
Structural Fund Regulations
In March 2000, the Lisbon European Council adopted a strategy which focused on employment and on making the EU the most competitive and dynamic knowledge-based economy globally by the year 2010. It also aimed at sustainable development.
In view of the prospective enlargement, in February 2004 the European Commission presented its proposals for the reform of cohesion policy for the period 2007 - 2013: 'A new partnership for cohesion: convergence, competitiveness, cooperation'. Vide:
Report & Proposals