The structural funds of the European Union are the financial instruments by means of which the policy for the support of multi-dimensional development, enhancement of economic and social cohesion, reducing differences of regional development standards and restructuring and modernizing the economies of those member states whose development level is below the average development level in the European Union is implemented.

In the 2004 – 2006 programming perspective Poland may take advantage of the support within the framework of the following structural funds:

• The European Regional Development Fund (ERDF), financing undertakings in the regions with the development level substantially lagging behind the average one in the EU, as well as in the regions with major restructuring activities in the industry and employment. The funds are addressed particularly to financing investment in infrastructure and environmental protection, development of small and medium enterprises, creation of new jobs through investment in manufacturing, and research and development activities.
• The European Agriculture Guidance and Guarantee Fund (EAGGF) consisting of two parts:
• guarantee section – the source for financing direct subsidies to farmers’ produce and intervention purchase on the agricultural market,
• orientation section – the source for financing the modernization of rural areas, boosting the competitiveness of agricultural products, education and retraining of farmers, supporting tourism and crafts, as well as environmental protection in rural areas.
• The Financial Instrument for Fisheries Guidance (FIFG) designed for restructuring fisheries in the EU member states.
• The European Social Fund (ESF) established predominantly to finance the activities counteracting unemployment in the EU member states, particularly assistance to employees threatened with long-term unemployment and young people entering the labor market.

The maximum financial support, mainly in the form of non-refundable subsidies and grants, which a given country may obtain from the EU within the structural funds amounts to 4% of its GDP. The regions with the per capita GDP lower than 75% of the average EU GDP are eligible for aid. This means that all regions in Poland may be covered by the aid from the structural funds.

One of the essential properties of structural fund operation is the programming principle, i.e. the development of multi-year development programs within which projects are financed; and the additionality principle, which requires that the aid granted by the EU be a supplement to the contribution of a member state.

Depending on the responsibility for the preparation and utilization of structural aid, it can be pursued within the framework of:

• national programs, prepared by a member state in agreement with the European Commission and implemented by a country on its own,
• community initiatives, regarding the key issues for the Union as a whole, prepared and implemented by the Commission directly, upon agreement with the member states. Program EQUAL 2000-2006 is a community initiative pursued on the basis of the funds of the European Social Fund. The main objective of this program is to counteract any manifestations of discrimination and inequality on the labor market, as well as social and professional integration of emigrants.

The finally agreed pool of allocations for Poland for 2004-2006 in the negotiation area – “Regional policy and coordination of structural instruments” amounts to EUR 7,653.3 million within the framework of structural funds.

The National Development Plan (NDP) is the basis for applying for structural funds by a country, the task of the program is to integrate all sectoral and regional programs at the country level.