Regional policy is the EU's second biggest budget post, but what exactly is it?

How it works: Regional Policy

Europe seems to invest a lot  in regional policy.

We're in Mons in Hainaut,  the poorest region in Belgium.

Yet this science park is at the cutting  edge of research in some areas.

This laboratory behind me focuses on  R&D in materials, including plastic.

Over there is a telecommunications  research and innovation centre.

This science park was built using funding,  50% of which was provided by the EU.

Nearly 38 million euros  were injected before 2007

by EU regional policy  into this project's development.

The aim was to boost  the regional economy.

Success. 57 companies are now  established in the science park,

representing 644 more jobs  for the region.

A victim of its success, the science park  is now expanding across the motorway.

Between 2007 and 2013  19 million euros will be invested

Innovation, improvement  of road infrastructure, or job creation:

is to strengthen economic and social  cohesion between the different regions,

thus evening out  development inequalities.

The funding made available  is used in three ways.

helping companies to set up through  zoning or grants, in practical terms,

that will be higher  than what they could obtain otherwise.

with the development of R&D,  and also of course through training.

Finally, because it's also important  to increase attractiveness,

favouring urban development  and territorial development.

For the 2007-2013 period, it has  set aside a budget of 308 billion euros.

It's the EU's second highest  area of expenditure.

goes to the poorest regions -  the convergence objective.

Eligible regions are those where  per capita GDP

That's 99 regions, situated mainly  in the new Member States.

Regional policy can be compared  to a squadron.

You need to act so that the whole of  the squadron can make rapid progress,

16% of regional policy funding is aimed at  competitiveness and job creation.

This covers all regions of Europe that  the first objective doesn't concern,

Finally, just 2.5% of funding is dedicated  to European territorial cooperation

When it comes to  crossborder cooperation,

there's too much emphasis  on the economic aspect

and not enough on things  linked to everyday life,

cooperation in cultural,  university or other areas.

Rich regions fear they'll lose  funding through austerity measures.

Their representatives demonstrated  about that in 2010.

It's certain that  regional policy will be reformed.

so that the funds, although smaller  amounts than up to now, can be used

with the aim of achieving a result  that will be reasonably more effective.

Whatever happens, funding  for the next regional policy

will be closely linked  to research and development.