How will EMU affect cohesion?

The new policy environment of EMU affects economic, political and social cohesion in different ways: the policy mix and menu will be reconfigured; it will provide for more macroeconomic stability in cohesion countries; economic competition will intensify and change patterns of specialisation; and comparison of living standards will become easier, which puts pressure on policymakers to reduce inequalities. This article assesses the significance of these effects and their likely consequences in the short, medium and long run. Then the salient cohesion issues as regards eastern enlargement are discussed. Finally, policy conclusions are drawn, mindful of the considerable uncertainties that warrant further research

Integration of CEECs into EU Market: Structural Change and Convergence

The central and eastern European countries (CEECs) have gone through a dramatic process of industrial restructuring in which the Europe Agreements have played a major role. Using detailed statistics, we analyse the transformation of CEECs' export structures and whether it led to structural convergence with the remaining EU members. We also analyse structural transformation within sectors in terms of quality ranges. The results show that, in general terms, CEECs have converged both at inter- and intra-sectoral levels towards pre-existing European Union (EU) members. We discuss whether further restructuring and relocation of CEECs' industrial patterns are probable in the aftermath of EU membership. Copyright (c) 2007 The Author(s); Journal compilation (c) 2007 Blackwell Publishing Ltd.

Enlargement and the European geography of the Information Technology sector

The information technology sector in Europe, comprising the production of computer hardware and software, is disproportionately located on the continent’s western periphery. The vast bulk of computers sold in Europe in the 1990s were assembled either in Ireland or Scotland, while Ireland also accounted for over 40 percent of all packaged software and 60 percent of all business software sold in Europe. As the sector in both these locations is largely foreign owned, the question arises as to whether EU enlargement might impact on the geography of the sector by diverting information technology FDI from the western to the new eastern periphery. This issue is explored in the present paper by analysis of five individual sub-segments: computer assembly and electronic components, R&D, mass market packaged software and the remainder of the software sector