Abstract
The structural funds are the European Union's main policy tool for reducing disparities among regions within the European Union. Since the initial establishment of the funds, the Highlands and Islands of Scotland have received a number of programmes aimed at developing the region's economy. To date, the most significant of these came during the 1994-99 period when the Highlands and Islands was designated as an Objective 1 region, and was thus eligible to receive the maximum financial support available from the funds. The Highlands and Islands' involvement with the structural funds will change in the 2000-06 period. In 1999 it was determined that the region would not qualify for Objective 1 status in this period but instead would receive a six year phasing out programme. New structural fund regulations agreed by the Council of Ministers in June 1999 set the context for the implementation of this programme. At the same time, the creation of the Scottish Parliament and Scottish Executive will also have an impact on the programme's implementation.
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