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The purpose of this paper is to analyze the regional problems of the Kingdom of Sweden at the beginning of the 21st century and to confront these findings with the regional policy of the Czech Republic. In the introduction the basic issues of Swedish regional development will be presented. In the text the tax issues will also be outlined, i.e. the system of taxes redistribution to the regional and local authorities in our republic and in Sweden. In the text a case study of regional association of "Western Sweden" follows (West Sweden the EU Project Analysis Service - WEPA). This association has established in Brussels its permanent representation and it promotes here the interests of individual cities and regions - for now only of mentioned "Western Sweden", which is not a municipal Swedish region, just the association composed of three Swedish regions (Halland, Varmland and Vastra Gotaland) and 71 cities. In the paper current practice and principles are documented, and the question remains: Is it possible to use this model of "Western Sweden" also in the Czech Republic? This article was created within the research project "Innovation Approach to Analysis of Disparities on Regional Level", realized under the state subsidy of The Ministry for Regional Development WD-30-07-1 at the Faculty of Economics, Technical University of Liberec, the Czech Republic.

THE ISSUES OF REGIONAL DEVELOPMENT OF THE KINGDOM OF SWEDEN AND THE CZECH REPUBLIC