This paper focuses on the new architecture of Cohesion Policy and the new European financial framework within which it is set. The discussion is divided into five sections. Section one examines the structure of the new European Financial Framework, highlighting its impact on financial transfers between Europe and Spain. In section two the new architecture of Cohesion Policy is explained, pointing out the relationships with related agriculture and fisheries policies and ending with an assessment of the principal features of the new Cohesion policy architecture. Section three examines the financial resources behind Cohesion Policy and their distribution in Spain. In section four the discussion shifts to a consideration of the concepts of convergence and the nature of regions. Finally the conclusion suggests that there are significant administrative, financial and strategic planning implications of the new financial framework and remodelled Cohesion policy: for economic development in general and for regional development in particular over the coming years.