ABSTRACT
This chapter considers the implications for European integration and European competitiveness of the changes in the economic relations of East and West Europe since 1989. It focuses on the de facto enlargement of the EU economy, which is already occurring due to the transition processes in Central and Eastern Europe (CEE), rather than on the specific arguments concerning admission of the CEE countries to the EU. The nature of the latter debate-about EU enlargement —requires first a clearer understanding of the political and economic changes that are occurring irrespective of future EU institutional changes.
