Abstract: The article substantiates the Carpathian region as a unique macro-regional economic system encompassing territories of seven Central and Eastern European countries (Czechia, Poland, Slovakia, Hungary, Romania, Serbia, Ukraine), with a population of approximately 18 million and an area of 190,000 km². The research relevance stems from the trend in European policies toward operationalizing the Carpathians as an object of an EU macro-regional strategy (analogous to the Danube, Baltic, Adriatic-Ionian, and Alpine strategies), addressing shared challenges-low competitiveness (GDP per capita <50 % of the EU average), demographic issues, environmental vulnerability, and infrastructure deficits-via cross-border cooperation.

Theoretical foundations are analyzed from works by European and Ukrainian scholars, revealing gaps: insufficient study of financial instruments, climate impacts, and integrated development models.

Key institutions identified include the Carpathian Convention (2003) and Euroregion, coordinating projects in sustainable tourism, green economy, transport, and energy under the «4C» model (coordination, cooperation, communication, capacity-building).

Development determinants are delineated: natural resource potential and the role of Ukrainian Carpathians in cross-border collaboration and European integration. Strengthening local finances is proposed through EU structural funds, Interreg projects, and EUSCARP to diversify the agrarian sector, ecotourism, and infrastructure.

Practical value. Conceptual framework supports policy formulation, cross-border investments, EU integration. Informs EUSCARP strategy, fund allocation, targeted interventions for mountain areas.

Conclusions highlight the practical implications of this conceptualization for cohesion policy, investment coordination, and sustainable regional economic development, with prospects for empirical research on financial mechanisms.