This chapter traces the impact of the evolution of the European multilevel administrative system on Italian public administration from the vantage point of Cohesion policy, a policy that has made large amounts of funds available to the Italian regions but has also exposed the limited capacity of both central and regional administrations to use these development funds. Theories of multilevel governance, multilevel administration, and Europeanization have been used to this end. The administrative requirements of the EU have demanded continuous adaptation, particularly from the regional tier of government but have also prompted a certain upgrading of administrative capacities on the part of both national and regional administrations. At this stage of the journey, the picture is still mixed, as the legacy of the centralized approach to regional development that characterized the Italian extraordinary intervention in the South and the generally legalistic approach to public administration still affect the ways in which administrative principles and personnel work (157).