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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. [ABSTRACT FROM AUTHOR]

Achieving economic, social and territorial cohesion by reducing existing disparities between regions through investing in infrastructure, human resources and diversification of regional economies remains a major goal for the EU Member States. The achievement of this goal would not be possible without the development and implementation of regional policy strategic instruments at national and EU level. This study presents the role, the essential elements, and objectives of instruments such as the Community Strategic Guidelines on Cohesion, the National Strategic Reference Framework, and the Romanian Operational Programmes for the programming period 2007-2013. Since the success of the cohesion policy is tied to its implementation, we also present the management and control system applicable for the operational programmes. The final part of the study deals with issues concerning the payment rate of Structural Funds in Romania, with a focus on the main challenges of the implementation process. An important task for the Romanian government is to remove the obstacles that brake the effective implementation of the Cohesion policy and the absorption of Structural and Cohesion Funds. [ABSTRACT FROM AUTHOR]