The European Union structural funds financing is apportioned unevenly among the regions, including, counties and cities. Allocating the received structural funds financing, the level of social and economic development of an area is not taken into account. Besides the problems of the poor municipalities co-funding in the uptake of the European Union structural funds are not considered. The existing problems do not allow to the regions of Latvia to develop and compete equally, all in all impeding the development and growth of the country. According to the author’s opinion in order to solve the social and economic problems Latvia makes use of the allocated European Union structural funds financing inefficiently.