This book aims to provide up-to-dateinformation on the state of the art of theEuro-Mediterranean integration and also onits implications for South-South integration. It takes stock of the results and the achievements of the Barcelona Agreements after more than15 years, compared and contrasted with theEU enlargement towards Eastern Europe. The papers presented in the book addresscomparative issues, national patterns and case studies. The focus is on the developmentsarising from increasing regional integration intrade and FDI, touching upon core issues such as specialisation, economic restructuring,development, competitiveness, economic andinstitutional catching up, labour marketadjustment. A wide variety of viewpoints and perspectives are presented adopting a wideset of analytical models. From descriptive case studies, to micro economic approachesat firm and industry level up to relativelylarge-scale, regression based gravity models,endogenous growth theories and simulation based computable general equilibrium analyses. Although the book mainly addresses economic relationships related to trade and investment liberalisation, these are not considered capable of automatically spring economic and social progress. Therefore, a common approach tothe papers in the volume is the strongem phasis on the policy setting, the institutional reforms and the issues of governance and ofcultural and institutional convergence.