Regional and local authorities today face a twofold challenge of delivering locally responsive policies in accordance with EU development goals. For this reason they need to align their development strategies with European guidelines. This paper determines the drivers and hindering factors behind the effective involvement of local and regional authorities in drafting and implementing EU policies with territorial impact. It evaluates several examples of multi-level governance operating in the institutional context of the EU and identifies its most important weaknesses such as lack of regional administrative capacities; insufficient Europeanization of subnational elites and inadequate communication between EU, national and regional levels.