Coordination of national and European policies
- Coordination of national regional policies
- Cross-border territorial cooperation
- Coordination of European policies
The first wing of the common regional policy is the coordination and monitoring of the regional policies of the Member States. Article 107 of the Treaty on the functioning of the EU (ex Article 87 TEC) states that any aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market. But in the very same article 107, paragraphs 3(a) and (c) specify that the following may be considered to be compatible with the common market: "aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment" and, more generally, "aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest". In monitoring regional aid, the Commission should seek on the basis of economic criteria to determine which are the least-favoured regions of the EU and establish for each of them the level of aid intensity so that the aid be targeted at those areas of the Union which are really experiencing difficulties. The monitoring of State aid thus makes a considerable contribution to the economic and social cohesion of the Union.