European Structural Policy: Bend or Break

This article deals with the consequences for the European Structural Policy (ESP) of the extension of the EU with countries from Central and East Europe. It argues that the allocation mechanism of financial assistance from the structural funds must be changed profoundly in order to gain a balanced system of distributing the available funds. In view of the changing Common Agricultural Policy and international trade policy in the framework of the WTO the European Structural Policy will become gradually more important. In order to compensate for the decreasing price support for agricultural products extension of structural assistance in the near future is inevitable.