The fourth enlargement of the EU in 1995 saw the accession of Finland, Sweden and Austria. Their entry significantly expanded EU territory and introduced a new type of large, sparsely populated region. In particular, the northernmost parts of Finland and Sweden, characterised by their harsh climate, low population density, peripheral location, long distances between communities and small local markets, were very different from other EU regions. The negotiations for the fourth enlargement occurred while the regional policy was undergoing a new reform. The new regulatory framework also took into consideration regional issues raised by the entry of Austria, Finland and Sweden and incorporated three concessions: part of Austria (the Burgenland region) gained Objective 1 status; a new Objective 6 was created for peripheral Arctic and sub-Arctic regions of Finland and Sweden; and EU competition policy rules were adapted to accommodate the subsidy practices of the Nordic states.