《THE ECONOMIC POTENTIAL OF A LARGER EUROPE》

PART I RECONCILING POLICIES FOR EUROPE1

1 Toward a stronger Europe in the global economy3

2 The challenges of a wider and deeper Europe8

PART II KEY ISSUES FOR CAPACITY BUILDING25

3 Capacity building challenges in the run-up to EU enlargement and beyond27

4 Partnerships for capacity building - a necessity rather than an option30

PART III HUMAN CAPITAL AND CAPACITY BUILDING EXPERIENCES AND LESSONS FOR THE FUTURE35

5 JVI and WTO - beacons for navigating the waters of transition37

6 Capacity building initiatives - a personal account from the giving and receiving end40

7 Meeting the challenges of enhancing capacity for development43

8 The changing institutional needs of the transition economies and the role of the IMF67

9 Investing in human capital: experiences from OECD countries and policy lessons85

PART IV THE ROLE OF FDI AND TRADE INTEGRATION IN THE CATCHING-UP PROCESS95

10 The importance of foreign-owned enterprises in the catching-up process97

11 Intra-industry trade between the EU and the acceding countries: the impact of foreign direct investment on trade structures110

12 Trade-: integration in South-East Europe and the trade potential of Croatia127

PART V THE ROAD TO MONETARY UNION145

13 The accession economies' rocky road to the euro147

14 EU enlargement and monetary integration - the next steps: ERM II and beyond161

15 The ERM II milestone on the road to the euro - the views of the acceding countries' central banks (panel discussion)176

16 On the threshold of the 2004 EU enlargement189

PART VI CORPORATE GOVERNANCE, FINANCIAL MARKETS AND THE OPTIMAL ROLE OF THE STATE197

17 Some remarks on good governance and sound finances199

18 Fiscal cost of state-owned banks in selected economies of Central and Eastern Europe203

19 The Romanian banking sector: progress, problems and prospects217

PART VII STABILIZATION OF EXPECTATIONS MACROECONOMIC AND STRUCTURAL POLICIES IN AN ENLARGED EURO AREA231

20 Fiscal discipline and the adoption of the euro for new members of the European Union233

21 Fiscal convergence before entering EMU245

22 International risk sharing in Europe: has anything changed?260

PART VIII ECONOMIC AND MONETARY UNION - A LEADING INDICATOR FOR POLITICAL UNION?277

23 European integration and finalite politique279

24 The European Union and social policy284

25 Is EMU a leading indicator for political union? A discussion of five theses*293++Index305