During the past few years, there has been a debate on local development policy in Southern Regions. Under the pressure of two changes, regions are speedily changing their role. Firstly, the process of enlargement of European Union to new member states; secondly, the institutional reform that foresees a wider devolution towards Regions and Towns. All above determines opportunities and threats. Opportunity for regions to be more attractive areas for medium and high knowledge intensive activities. Opportunity coming from institutional reform for local development policy to be nearer to the territories and to the economical and institutional operators. Threats coming from the concentration of EU resources to countries with a development lower than present regions Objective 1. The threat of a possible centralistic regional approach towards development policy.