Where you live and work still determines to a considerable degree, your social and economic well-being. This chapter critically discusses how territorial inequalities are governed at the EU scale, and how these are being tackled through the transnational governance of contemporary Europe. From the beginning, there have been large territorial disparities in the EU. The regional aspects were recognised in 1975 with the creation of the European Regional Development Fund (ERDF), and in 2008 the Treaty of Lisbon introduced territorial cohesion alongside the economic and social pillars. A significant proportion of its activities and budget are now dedicated to reducing spatial disparities, with particular reference to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps.