In this thesis, I set up a standard New Economic Geography model and estimate it in the regional context of the European Union. The analysis underlines the clear core-periphery structure of Europe, but also identifies forces that hint at a catching-up of lesser developed peripheral regions. While regions that are close to the geographic center on average have a much higher market access, regions far from the center can improve their market access over the time period of 1999-2009 relative to their initial position. I estimate and evaluate the impact of European Union Cohesion Policy on this process and do not find the positive developments to be caused by or connected to the financial facilities of the European Union Regional Policy.