Abstract—Structural Funds are the European Union's (EU) main instruments for supporting social and economic restructuring across the Union and sustainable development, ensuring convergence processes for the regions with different potential. Structural Funds account for over a third of the European Union budget. The aim of the presentation and paper is to review the use of EU structural funds for different programming periods and to identify the main achievements and challenges in ensuring sustainable economy growth and cohesion in EU. The main tasks to achieve this aim are: to analyze aims and financing priorities from EU structural funds and to compare the results of use of EU Structural funds in different EU member states. Index Terms—Cohesion, EU structural funds, regional development, sustainable economy growth. I. INTRODUCTION Structural Funds are the European Union's main instruments for supporting social and economic restructuring across the Union. They account for over a third of the European Union budget. There are four Structural Funds: ERDF, ESF, EAGGF and FIFG, which contribute to the economic development of disadvantaged regions. A region may have access to one or more of the four structural funds, depending whether it has Objective 1, 2 or 3 status; all regions have Objective 3 status [1]. The aims of the funds, and in which priority 'Objective' area they can be spent, are set out below [2]: The European Regional Development Fund (ERDF) aims to improve economic prosperity and social inclusion by investing in projects to promote development and encourage the diversification of industry into other sectors in areas lagging behind. This fund is available in Objective 1 and 2 areas. The European Social Fund (ESF) funds training, human resources and equal opportunities schemes to promote employability of people in both Objective 1 and 3 areas. In Objective 2 areas ESF may be used to complement the ERDF activities. The European Agricultural Guidance and Guarantee Fund (EAGGF) is available in rural Objective 1 areas to encourage the restructuring and diversification of rural areas, to promote economic prosperity and social inclusion, whilst protecting Manuscript received July 18, 2014; revised April 10, 2016. R. Dapkus is with the Institute of Public Policy and Administration at Kaunas University of Technology, K. Donelaicio str. 20, Kaunas, LT- 44239, Lithuania (e-mail: Rimantas.Dapkus@gmail.com). D. Streimikiene is with the Vilnius University, Kaunas Faculty of Humanities, Socio-cultural Center, Muitines str. 8, Kaunas, LT-44280, Lithuania (e-mail: dalia@mail.lei.lt). and maintaining the environment and our rural heritage. In areas outside Objective 1, the EAGGF (Guarantee section) provides funding within the England Rural Development Plan. The Financial Instrument for Fisheries Guidance (FIFG) funds projects to modernise the structure of the fisheries sector and related industries and to encourage diversification of the workforce and fisheries industry into other sectors. It also aims to ensure the future of the industry through achieving a balance between fisheries resources and their exploitation. Most structural fund spending is targeted on specific regions, known as Objective 1 and 2 regions. There are separate national Objective 3 programmes in England, Wales, Scotland and Northern Ireland. The programmes must be approved by the Commission; set out below are the various stages in the approval process that programmes have reached [2]. Objective 1: Eligible areas are those that have less than 75% of EU average GDP. It is the highest level of regional funding available from the EU. It is aimed at promoting the development and structural adjustment of the EU regions most lagging behind in development. Objective 2: Aims to support the economic and social conversion of areas facing structural difficulties. It is the second highest level of funding available from the EU. Areas qualify for Objective 2, under four strands - industrial, rural, urban and fisheries. Objective 3: This Objective involves only the European Social Fund. It aims to develop labour markets and human resources and in addition, will help firms and workers adapt to new working conditions and so compete more effectively in global labour markets. It is directed at the long-term unemployed and those facing particular barriers to finding fulfilling employment because of their disability, racial origin, or sex. In addition to the priority Objective areas around 5% of the Structural Fund budget fund four Community Initiatives. The current initiatives are [2]:  EQUAL – funds training and employability schemes to combat discrimination and inequalities in the labour market;  LEADER + – funds rural development projects;  INTERREG – provides funding to encourage cross border, trans-national and interregional co-operation; to encourage balanced and sustainable development across the European Community.  URBAN – funds schemes in small and medium sized towns suffering from significant economic and social conversion difficulties. Impact of Use of European Union Structural Funds for Sustainable Development in Member States Rimantas Dapkus and Dalia Streimikiene International Journal of Trade, Economics and Finance, Vol. 7, No. 2, April 2016 25 doi: 10.18178/ijtef.2016.7.2.494