By creating and further improving the policy and instruments of cohesion policy, the focus is increasingly placed on the importance of regional development, i.e. the development of local units that are considered one of the key development actors. European Union member states have the opportunity, through the instruments of this policy, to invest and direct funds for the development of the most critical regions, in order to make the national economy more competitive and developed. The focus is mostly on the countries of Central and Eastern Europe, which have similar characteristics to the Republic of Croatia (hereinafter: Croatia). One of the least developed counties (and it will be explained below by which criteria) in Croatia is Vukovar-srijem county, which is located in the very east of Croatia. Its underdevelopment is attributed to inadequate (and for many years neglected) demographic policy and slowed general economic development in the post-war years. This county has numerous development potentials arising from its natural and cultural characteristics, geographical positioning and increasingly noticeable economic preconditions for development. The paper will observe the current trends and policies of the European Union in the field of regional economic sciences, then compare the implementation of cohesion policy instruments in Croatia and selected countries. An analysis of the county's competitive environment will be conducted and, through the application of urban policy and marketing branding instrument, potential solutions and opportunities will be offered for using existing and activating new development capacities in order to ultimately enable Vukovar-srijem county competitiveness and general economic and social the betterment of the whole region.