The 2007-13 EU rural development framework is expected to reinforce endogenous development forces in European mountainous zones, mainly in peripheral rural areas, by strengthening a number of measures of the 1999 Regulation. This paper attempts to examine the prospects of the second pillar's impact on the mountainous region of Parnonas in southern Greece. This is done by assessing the efficiency of EU structural programmes in the last two programming periods (mainly of LEADER II and LEADER+) in transforming the region's original handicaps (depopulation, lack of infrastructure and human capital development, decline of agricultural activities, degradation of environment and landscape) into opportunities for sustained socio-economic growth (promoting agro-tourism & recreation, high-value farm products suitable for small scale farming and niche markets, traditional crafts). The methodology involves the use of data and other information provided by published reports and experts from the local development company Parnonas, by local people and local authorities. The results indicate that steps towards the adoption of the new model have indeed been taken, but there is still a long way until sustainable development in the region can be achieved.