The Economic Potential of a Larger Europe gives insights into past, present and future issues related to the ongoing EU enlargement process. Providing a unique forum for debate and a multiplicity of views and experiences from both high-profile academics and those who engage with enlargement on an implementation level, this book covers a wide range of topics that are key to a successful transition and integration process and thus to the provision of a prosperous growth environment within a larger Europe. Special attention is paid to monetary integration, notably entry into ERM II, on which representatives of the national central banks involved present their views. Given the non-technical language of most contributions, this publication targets a broad audience generally interested in the future of the EU, in the design of the enlargement process, and in the challenges of reform on the road to a stronger Europe.

Part I. RECONCILING POLICIES FOR EUROPE

1. Toward a stronger Europe in the global economy / Horst Köhler
2. The challenges of a wider and deeper Europe / Charles Wyplosz

 Part II. KEY ISSUES FOR CAPACITY BUILDING

3. Capacity building challenges in the run-up to EU enlargement and beyond / Jean Lemierre
4. Partnerships for capacity building – a necessity rather than an option / Kipkorir Aly Azad Rana

Part III. HUMAN CAPITAL AND CAPACITY BUILDING – EXPERIENCES AND LESSONS FOR THE FUTURE

5. JVI and WTO – beacons for navigating the waters of transition / Valeriy T. Pyatnytskiy
6. Capacity building initiatives – a personal account from the giving and receiving end / Josef Tošovsky
7. Meeting the challenges of enhancing capacity for development / Frannie A. Leautier
8. The changing institutional needs of transition economies and the role of the IMF / Saleh M. Nsouli
9. Investing in human capital: experiences from OECD countries and policy lessons / Raymond Torres

 Part IV. THE ROLE OF FDI AND TRADE INTEGRATION IN THE CATCHING-UP PROCESS

10. The importance of foreign-owned enterprises in the catching-up process / Alena Zemplinerova
11. Intra-industry trade between the EU and the acceding countries: the impact of foreign direct investment on trade structures / Jarko Fidrmuc, Martin Djablik
12. Trade integration in South-East Europe and the trade potential of Croatia / Boris Vujčic, Vedran Šošic

 Part V. THE ROAD TO MONETARY UNION

13. The accession economies' rocky road to the euro / Barry Eichengreen
14. EU enlargement and monetary integration – the next steps: ERM II and beyond / Peter Mooslechner
15. The ERM II milestone on the road to the euro – the views of the acceding countries' central banks (panel discussion) / comp. by Zoltan Walko
16. On the threshold of the 2004 EU enlargement / Gertrude Tumpel – Gugerell

 Part VI. CORPORATE GOVERNANCE, FINANCIAL MARKETS AND THE OPTIMAL ROLE OF THE STATE

17. Some remarks on good governance and sound finances / Josef Christl
18. Fiscal cost of state-owned banks in selected economies of Central and Eastern Europe / Khaled Sherif
19. The Romanian banking sector: progress, problems and the prospects / Stephan Barisitz

 Part VII. STABILIZATION OF EXPECTATIONS – MACROECONOMIC AND STRUCTURAL POLICIES IN AN ENLARGED EURO AREA

20. Fiscal discipline and the adoption of the euro for new members of the European Union / Fabrizio Coricelli
21. Fiscal convergence before entering EMU / Luca Onorante
22. International risk sharing in Europe: as anything changed? / Gabriel Moser, Wolfgang Pointner, Johann Scharler

 Part VIII. ECONOMIC AND MONETARY UNION – A LEADING INDICATOR FOR POLITICAL UNION?

23. European integration and finalite politique / Johan Verhaeven
24. The European Union and social policy / Gerda Falkner
25. Is EMU a leading indicator for political union? A discussion of five theses / Fritz Breuss