The aim of this paper is to analyze the effectiveness of raising and spending EU funds by the local government in Lublin in the first period of the Polish accession (2004–2006). The criteria of effectiveness we use are: increase of city competitiveness (attractiveness) and creating conditions for diffusion of development processes into the region. Compared to other Polish cities, Lublin had trouble raising EU funds. Besides, there was no innovative strategic vision of their spending. As a result, EU Cohesion Policy improved Lublin’s competitiveness and contributed to the development of the relations between the city and its region only to a small extent.