The Interreg II C programme for the Baltic Sea Region was adopted by the European Commission in December 1997. The Baltic Sea Region is one of seven European co-operation areas covered by this Community Initiative. The programme was designed to provide co-financing to transnational projects on spatial planning and regional development. It was based upon, in 1994, established ministerial co-operation in spatial planning in the overall Baltic Sea area through the "VASAB" process ("Visions and Strategies around the Baltic Sea 2010"). At EU level, the "European Spatial Development Perspective" (ESDP) was adopted in 1999 laying the foundations for future joint co-operation on spatial development throughout the overall European territory.

The EU countries involved in this programme are Denmark, Germany, Finland and Sweden. Further participating countries are Norway, Poland, Estonia, Latvia, Lithuania, Russia and Belarus. The programme supports exclusively transnational projects involving partners from at least three or more participating states.

The 45 selected projects financed under this programme are promoting a Baltic urban system and a balanced settlement structure. They are aiming at improving communications and identifying innovative energy solutions as part of sustainable regional development. Integrated management of coastal zones and islands belong to the fields of interest as well as developing spatial planning strategies, in particular with respect to natural and cultural heritage and tourism.

The EU Interreg II C contribution amounts to some EUR 25 million from the European Development Fund (ERDF) to co-finance EU project partners. For Central and Eastern European Countries (CEECs), project partners received financing from the EU PHARE and TACIS Programmes but have contributed also from own national funds. Norway contributes with EUR 2 million to support Norwegian project partners.

The four EU Member States have established a common management structure to administer the programme. Further information can be obtained at the BSR Interreg II C Common Secretariat and the Joint Financial Body. The two joint Steering/Monitoring Committees decide on the allocation of funds to projects and oversee the implementation of the overall programme.