European Community policymaking has been predicated upon the member governments acting as gatekeepers which mediate between their respective domestic political systems and EC institutions. However, the sweeping changes associated with Project 1992 threaten the gatekeeping status of the Twelve. This article explores the domestic and international consequences, which are cast in terms of three scenarios: the maintenance of the status quo, the emergence of a ‘Europe of Regions’, and a variegated set of outcomes. As an attempt to move beyond the realm of pure speculation, concrete lessons are culled from the reform of the European Regional Development Fund since 1979 and its effect on national and subnational interests in Britain and the Federal Republic of Germany. The theoretical premise is that national and subnational actors respond to Community initiatives within a structured context, the domestic policy networks in which they are embedded. These clusters of interorganizational relationships at the domestic level reflect the underlying distribution of resources among actors, and endow them with different capabilities and vulnerabilities as they seek to cope with changes administered to their policy environment by the EC. The findings suggest skepticism of the image of strengthened regions breaking out of the orbit of weakened states with the assistance of the EC. While the ability of member states to retain their roles as gatekeepers varies, this capacity remains strong. Moreover, subnational actors often view the EC as yet another exogenous institutional constraint on action.