ABSTRACT
Concerns over Europe's competitive position have engendered a wide-ranging discussion on the appropriateness and costs of government's role in the economy. That discussion has revolved around subjects such as the social welfare system, government ownership of and assistance to industry, and government regulation. And it has highlighted the conflict between the universally accepted responsibility of government to provide an extensive underpinning of social services to its citizens; and the economic costs of this system to governments and business, which has diminished the competitiveness of European firms. The prospective enlargement of the European Union (EU) has very direct, significant implications for the future of the Union. It will increase its size and diversity, thus forcing important decisions to be taken regarding the EU's institutions and policies. Finally, the budgetary implications of enlargement will force a review of spending programs, both the structural programs and particularly the Common Agricultural Policy.
