Despite being one of the richest areas in the world, the EU faces the growing problem of prolific inequality in terms of wealth and competitiveness between different groups of countries. This is dramatically represented in the income differences between the richest and poorest regions of Europe: central London and Romania. Central London's per capita income is a staggering 290% of the EU average compared to Romania, with per capita income a meager 23% of the EU average. The European Union has recognized this problem and has taken action by implementing "Cohesion" policies aimed at promoting economic convergence, competitiveness and financial unity. To achieve these objectives, the EU has allocated a significant part of the taxes imposed on member countries to the "Structural Funds". These funds consist of three financial instruments totaling around €308 billion: more than a third of the EU budget. Structural Funds are intended to help areas in need, generally with a GDP below 75% of the EU average. They should direct money to capitalize on the comparative economic advantages of different areas of the EU by funding projects ranging from improving education to investing in infrastructure to protecting the environment. Supporters of the funds define these projects as “an intrinsic part of the European idea and project” (Hubner) and point to areas that have shown high growth, such as Ireland, as evidence of its success. To what extent, however, are these statements true? Looking beyond the glorified and falsely correlated successes in the EU, a careful observer may see the flaws of this policy and would wonder how much these funds actually improve the state of the European economy. Woul...... middle of paper .. ....l Economy and politics. Oxford [England: Blackwell, 2000. 1-30. Press."Charlemagne: drowning in a sea of ​​structural funds? Some wonder whether European Union funds for poor regions are always useful." The Economist 27 March 2003. Print.*“Delocalisation and European integration: is structural spending justified?” by Karen Midelfart-Knarvik and Henry Overman, in Economic Policy, October 2002. Friedman, Milton. An Economist's Protest: Columns in Political Economy. Glen Ridge] NJ: T. Horton, 1972. 6-7. Print.Hübner, Danuta. "EU cohesion policy 1988-2008 invests in Europe's future". Info Regio 26 (2008): 1-36. Print.O'Murchu, Cynthia and Peter Spiegel. "The great vision of Europe loses focus." Financial Times [London] 29 November 2010. Print.Senior, Nello Susan. "Chapters:4,15." The European Union: economy, policies and history. London: McGraw-Hill, 2009. Print.