By M. Holmes

This new version of The Eurosceptical Reader argues powerfully opposed to the speedily accelerating strategy of eu Union's (EU) fiscal, political, and armed forces integration. It chronicles the EU's present incorrect turnings and ignored possibilities. themes mentioned comprise the one foreign money undertaking, the great Treaty, and the swift response strength.

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The second purpose of reform was implemented by doubling the Structural Funds available and increasing the Funds by another 50 per cent for the six-year period 1994–9. 2 per cent. The third purpose of reform was introduced by switching from projects to programmes. 2. It can be seen that 85 per cent of the Fund allocation was designated for Objectives 1, 2 and 5b, with the vast bulk concentrated on Objective 1 regions. The average GDP per capita in Objective 1 regions was 64 per cent of the EU average.

Capital already moves very freely – some would argue too freely. The euro could pose further problems for economic management in this regard. Without speculative opportunities in currency markets and interest rate differentials to take advantage of within Euroland, there is likely to be a switch of capital from intra-European flows to increased flows between Europe and other regions of the world. This will pose problems for the stability of the euro and, by implication, for interest rate policy to secure external equilibrium if the ECB were to pursue an exchange rate target.

I should also mention in this brief introduction that I am not an orthodox neo-classical economist in the sense that I believe that, if markets are allowed to function freely without impediments, the price mechanism will work in such a way as to secure full employment and the optimal allocation of resources. Specifically, I don’t believe that flexible labour markets, and wage rate reductions, are sufficient to secure full employment. No amount of flexibility will be sufficient if there is not enough demand for labour in the economic system as a whole.

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