BRUSSELS, May 30 (Xinhua) -- Funding from the European Union under the cohesion policy has borne fruit in helping the bloc's regions to develop, the European Commission said in a report on Wednesday.

    In its fourth report on economic and social cohesion, the EU's executive arm provided the economic, social and territorial situation of the enlarged EU of 27 member states and 268 regions for the first time.

    "Cohesion policy has demonstrated its capacity to adjust to changing circumstances. It has supported much-needed investment in infrastructure, human resources, and the modernization and diversification of regional economies," said Danuta Hubner, the EU commissioner responsible for regional policy.

    The report, which provides a first assessment of the impact of the EU cohesion policy in the 2000-2006 programming period, contains detailed analysis of the position of regions in terms of GDP, productivity and employment.

    It found that disparities in income and employment across the EU have narrowed over the past decade, thanks to EU cohesion policy funding, which designed to help lesser developed regions, like Eastern European countries, to catch up with the more developed ones.

    For example, between 2000 and 2006, the cohesion policy has contributed to increasing GDP by 2.8 percent in Greece and 2.0 percent in Portugal. Preliminary estimates suggest that over the period from 2007 to 2013, the policy will contribute to increase the GDP of Lithuania, Latvia, and Czech Republic by around 8.5 percent.

    Cohesion policy has also contributed to reducing social exclusion and poverty through job-oriented training. Over 450 000 gross jobs were generated in six least well-off countries between 2000 and 2005.

    Among billions of euros spent in cohesion policy, the majority of investments co-funded by the EU are made in regions where GDP is less than 75 percent of the average.

    "Cohesion policy is all about providing opportunities to each EU citizen wherever they live by reducing disparities between regions, by mobilizing unused potential, by concentrating resources on growth-generating investments," Hubner said.

    However, there is still a significant gap to make up between the least well-off and the rest, which will require a long-term effort, the report noted.

    The commission's report also identifies a series of challenges with which member states and regions will be confronted in the years ahead.

    Problems such as an aging population, increased energy prices, global competition, climate change and urbanization would feature prominently, according to the report.

    In preparation for the new period 2007-2013, the report includes ten questions to kick off the debate inside and outside the European institutions on the future of the cohesion policy.

    Those range from what lessons can be drawn from the past experience to how climate change will challenge cohesion policy.