Unity with Diversity in the European Economy

The enlargement that encompassed the accession of greece in 1981 and of Spain and Portugal in 1986 significantly altered the balance of the European Community, while the double shock of EC membership and 1992 could drive the economies of the new members into depression or, equally, accelerate their modernization. This important new book from the Centre for Economic Policy Research examines theoretical issues in the integration of a diverse economic region and the combined impact of EC membership, financial integration and the single market programme on the joining countries. Christopher Bliss examines theoretical and practical obstacles facing ED-wide mechanisms to encourage investment and growth in poorer regions. Paul Krugman and Anthony Venables analyse the ambiguous effects of EC membership and of trade liberalization on output and employment in peripheral regions. Alasdair Smith studies enlargement, the single market and external trade policy in the EC's largest manufacturing sector, the car industry. William Branson examines the constraints placed on national macroeconomic policies by rapid monetary and financial integration and implications for EC-wide fiscal institutions. Paul Krugman presents a general framework for analysing the macroeconomic policy dilemmas faced by the joining countries. Louka Katseli, Jose Vinals and Jorge Braga de Macedo assess the opportunities and challenges facing the Greek, Spanish and Portuguese economics. They draw on an extensive body of work produced by three teams of researchers under their leadership. There is also an introduction by the editors and a foreword by Michael Emerson and Richard Portes.