EU Enlargement. Opportunities and Challenges

Abstract

The purpose of this paper is twofold. It aims at providing a socio-economic picture of the candidate countries, on the one hand, stressing the large difference in terms of standards of living compared to the poorest EU15 countries and the need for assistance. On the other, the paper wil1 concentrate on the crucial role of financial market development in the process of catching up. Finally, it analyzes two important issues that surround the enlargement debate: capital account liberalization and EMU membership.