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Europe is rescaling as functional systems in the economy and society are migrating to new territorial levels. The region has emerged as a key level for public policy, political competition, interest intermediation, and recognition of diversity. There is a discussion of theories of territory and regionalism; a historical interpretation of the territorial state; an analysis of spatial rescaling in economic and social matters; a discussion of the regionalization of politics. Then there is an analysis of regions as institutionalized spaces and government; of the regionalization of the representation of social and economic interests; and of policy variation among regions. There is also a discussion of the normative implications of rescaling for social solidarity and for the management of self-government claims. Regions are loosely-bounded and contested spaces and will not replace the nation-state, but they do transform it. There is an increasing emphasis on competition among regions to attract investment but, rather than generating a race to the bottom in taxes and services, rescaling has produced a variety of experiences. The economic crisis since 2008 has increased pressure on regions and cities and made the management of territory by states more difficult.
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