Europe has always been a leading global tourist destination and tourism because of its economic importance integral part of the European economy. European objective is to maintain its position of the leading destination, and it is trying to achieve a common strategy, which should contribute to maintaining and strengthening the competitiveness of European tourism. Withdrawal of European funds is quite topical, especially in recent times. By joining the European Union, Croatia was given the possibility of financing projects with EU funds which is extremely important for the development of economy and overall national prosperity. The aim of this final thesis is to investigate, analyze and display the European funds and their utilization with special reference to Croatian tourism and Istria. Among other things, the thesis will show the impact of EU funds on the development of tourism. This final thesis consists of an introduction, three main headings and a conclusion. The second part of the final thesis is entitled "The structure of the EU and its institutions" conceptually defines and explains the structure of the European Union. In this part it is explained the main strategy, its priorities and initiatives and public policy for tourism. The third part of the thesis is entitled "EU funds for tourism development". This section presents the most important funds and programs for tourism. Through the funds presented in this chapter it is possible to withdraw funding for tourism. In the fourth part of the thesis, which is titled "Exploitation of European funds in the region of Istria" pointed to the use of funds in Istria region and presented the most successful projects in the region. In "Conclusion" are sublimated research results.