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The envisaged EU enlargement will lead to a redirection of Struc- tural and Cohesion Funds expenditures from current to new EU- members. This redistribution of funds makes the accession countries even more attractive as a location of FDI. Using a logistic regressions approach, this paper shows that a hypothetical reallocation of Struc- tural Funds as envisaged by Agenda 2000 leads to a redistribution of FDI by approximately 0.8 percentage points from the current EU members to the accession countries (first round) and 2.6 percentage points (second round), respectively.

Structural Policy Reform and the Distribution of FDI in Europe