Introduction

This may not seem to be the appropriate place in the book to discuss the impact of European integration on the economy of the EU and member states (MSs), since economic and monetary union (EMU; Chapters 10–12), as well as all EU policy areas, are yet to come. However, the overall economic aims of the EU have already been stated (Chapter 2), the theoretical considerations identifying what needs measurement delineated (Chapter 6), and the changes expected from the single European market (SEM) pinpointed (Chapter 7). Also, each policy area is unique, requiring its own analytical approach, hence its specific measurement technique, so all cannot be lumped together to be tackled in unison. Of course, there are close theoretical associations between EMU, tax harmonization (Chapter 15) and the EU budget (Chapter 19), but even these have their own peculiarities, so they need separate treatment.

The issues raised in the mentioned chapters inform us of what needs measuring as a consequence of EU formation: the short-term resource reallocation effects – that is, trade creation (TC) and trade diversion (TD); changes in the terms of trade (t/t); changes in rates of economic growth and welfare; and the longer-term dynamic effects. This chapter briefly deals with each of these, but several aspects are covered in other chapters so will only be touched on. The chapter finishes with conclusions.