This paper talks about the creating of project proposals financed from the European Union funds. The paper explains basic concepts: what is the European Union, what are its common (public) policies and how they are financed, what is the cohesion policy and what are the financial instruments used in its implementation, all with the purpose of an easier understanding of all that can be financed with the European Union funds. The paper focuses on the creation of project proposals financed from the European Union funds, with the stages of the process explained in detail: the concept of the project is defined and its life cycle is described; further, the preparation of project proposals financed from European funds is described (including the analysis phase in which all the factors that can affect the outcome of the project and planning are studied, where all the necessary steps in the preparation of a project must be determined in detail), the phases of an EU project cycle are discussed, the creating of a logical matrix is explained (wherein all project elements are logically connected), and finally, the schedule of all planned activities and the budget of a project are described, with special reference to the acceptability of project costs. Project methods and risks, as well as project sustainability are discussed. Who is who of the project is also clarified, and which individual steps the implementation of a project includes. The project public procurement process is also explained, including the most common errors in the procurement process. This paper also discusses project reporting and implementation monitoring, as well as informing about the project and is visibility. The paper concludes with recommendations given in a concise manner as to how to prepare a European project.