A top-down analysis reveals that there is a change in the relationship between national and subnational authorities which can be attributed to the challenges facing industrialized countries in general, and European Union (EU) member states in particular. Indeed, in the 1980s, the region has been rediscovered by political economists, political scientists, and sociologists. On the one hand, people are turning to their territory as a way of reclaiming what is threatened. On the other, the region can portray itself as an asset on the global market because it is often better able to interact with the growing number of small and medium- sized firms. Decentralization has taken place across much of Europe; reforming the structures of subnational government can be seen as another attempt to modernize political systems. There is also a connection between EU structural policy and decentralization. In the post-1988 period, structural funds provided an opportunity for subnational authorities to influence EU decision-making, and have provoked a decentralist response from central and subnational authorities (Marks, 1992; Bullmann, 1997; Jeffery, 1997). Structural programmes attempt to alleviate economic disparities through transfers and to enhance the competitive capacity of regions. They also seek to arm regions with the necessary infrastructure and skills needed to compete in the internal market. Politically, one aim is to gain the support of peripheral actors by showing themthe benefits of EU membership. More importantly, there are prerequisites as to process which respect the principles of subsidiarity and partnership with the regions which can empower regional actors. (author's abstract)