The 1999 reform of the structural fund regulations: multi-level governance or renationalization?

This article examines the June 1999 reform of the European Union's structural funds. This is the second major reform to the regulations established in 1988, the first having occurred in 1993. The article evaluates the 1999 changes in relation to the earlier decisions. It also seeks to determine what they imply for a theoretical understanding of the policy sector. In particular, it evaluates whether the 1999 reforms represent a renationalization of the funds. The conclusion reached is that central governments were undoubtedly crucial to the reform process and will remain pivotal actors in the operation of the funds. Nevertheless, the 1999 reforms, as with the 1993 reforms before them, do not represent a complete renationalization of the funds. As identified by the multi-level governance perspective, the Commission will continue to be active in the sector in a bargaining relationship with the central governments. Subnational actors will also be important, although this importance will be heavily influenced by the central governments.