ABSTRACT
Although the single market was the catalyst for a resurgence in formal integration, the agenda of economic integration goes beyond the internal market. Collaboration on research and development is a necessary complement to market liberalization. Europe’s ability to maintain its industrial position depends on overcoming the technological gap between itself and the other industrial powers. The creation of a large internal market raises questions about the distribution of economic welfare in the EC. The politics of redistribution are an intrinsic part of the debate on economic integration. The size and nature of the EC budget comes into prominence in any debate about the role of public finance in integration. Economic and monetary union, again part of the agenda, represents a ‘quantum leap forward’ in the Community’s aspirations towards the creation of an advanced level of economic integration. The purpose of this chapter is to address the issues arising from the wider agenda of economic integration. There are four sections in this chapter dealing with research and development, the politics of redistribution, the Community budget, and economic and monetary union.
