ABSTRACT
This chapter examines the influence of European Union (EU) policies on rural peripheral areas. It concentrates on Small and Medium Enterprises (SMEs) located in the rural peripheral areas and their participation in the process of globalization. The chapter discusses the challenges for SMEs as a result of the imminent enlargement. The modest effects achieved to date by the liberalization of trade in agricultural products, together with the specific nature of rural area peripheries, combine to create a low level of globalization in the SMEs located in rural areas. Within the context of EU enlargement it should be noted that the costs of adapting to the standards of the internal market will be borne exclusively by SMEs from the candidate countries. The chapter describes the effects of one part or the structural policy of the EU, the Regional Policy. As a consequence the gap between world market and EU prices widened further and surplus 'food mountains' and 'milk lakes' were created.
