This paper concerns the gradual proliferation of the neoliberal rationale in European Union urban policies towards a specific mode of competitivenessoriented ‘policy networking’. Empirical research on the policy network of the EU URBAN Initiative in Portugal and Greece illustrates the ineffectiveness of the current approach in acknowledging the socio-economic and political specificities that influence development prospects in lagging cities. The Commission's proposals on the reform of the Funds (2007–13) suggest the incorporation of EU urban programmes in the mainstream spatial policies framework. The rationale, however, remains unchanged. The context-free emphasis put in these proposals on the ‘competitiveness’ target mitigates the ‘cohesion’ objective and risks perpetuating uneven urban development trends.
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