One of the most important and urgent problems in the last years is how to ensure equal regional development of Latvia. There are essential differences of social environment and possibilities to do business among the regions of Latvia. Statistical data shows that the gap of social and economical development of regions is becoming broader with each year. After 1 may 2004, one of the instruments that can help to promote equal regional development is financial resources from the EU structural funds. But there are numerous problems, which the Latvian government must resolve to utilize the money of EU structural funds for regional development more efficiently. The problem of equal development of Latvia cannot be resolved only with the resources of the structural funds; it is also a problem calling for activities of the Latvian government. The government must implement the administrative territorial reform and clearly define the politics of regional development.