Budd and Edwards (1997, p. 173) argues that this is an adjunct of decentralization of political and economic powers which have caused regions and cities such as those within France and Germany to become more competitive and seek comparative advantage over other cities. Jessop (1998, p. 78) adds that the Lisbon Strategy of 2000 presented contributed to the competitiveness within the region by presenting a European Union (EU)’s goal of becoming the most competitive, knowledge based and dynamic among the world economies. Past scientific literature demonstrates that cities and regions within the EU compete for several objective based reasons. These include competition for investment, economic growth, population and public funds. This essay gives a critical analysis and discussion of the competition among regions and cities within the EU. A theoretical understanding and explanation of the objectives behind the competition is also presented.Regions and cities within the European Union have demonstrated a competitive approach to development and growth with the support of EU and national policies. According to Lever (1998, p. 1030), cities and regions within the EU compete for mobile investment in manufacturing and production. Each region and city within the EU desires to utilize the resources at its disposal too maximize production or manufacturing and as a result become the most productive of the territories within the Union (Committee On Spatial Development, 1999, p. 9). With the increased competition for resources within the EU, states are currently competing for various forms of wealth (Cox, 1995, p. 213). This involves competitive fight for dominance within the housing and property sector, labor market, information technology and the development of commerce. Lever (1998, p. 1034) explains that the competitiveness of the EU regions and cities is said to be fueled by the support of the EU competition law in additional to the supportive national policies which encourage competition.