In this masters thesis, entitled “Rural Areas in the European Union and its Development Frameworks”, the current living conditions are discussed and the development of rural areas is observed; how much the rural areas got developed since 2014 until 2020. With the process of urbanization and globalization, lots of people left rural areas and moved to urban areas where there is higher supply of employment opportunities, a wider offer of activities and higher concentration of people, education facilities as well with access to modern technologies. The rural population is living in conditions that have to be improved; the EU gives opportunity for usage of their funds and resources through different programs and measures to improve the living and business environment. Rural areas today are appealing because of their advantages over urban areas; those advantages are nature, fresh air, attractive landscapes, new business opportunities and a better lifestyle. The topic is discussed through theoretical parts about programs, funds and policies from which resources can be withdrawn and through the analytical part where the socio-economic, business environment and demographic indicators in rural areas of the EU are analyzed for the given period. Challenges that rural development faces are classified as economic, social and environmental; migrations to urban areas, natural disasters, poor infrastructure, lack of digitalization and unemployment.