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This is a set of studies on the subject of economic convergence and divergence in Europe. It combines theoretical appraisals of the central questions relating to convergence and divergence in Europe, together with analyses of the policy implications for individual countries and for individual countries and for the wider Europe. Based on the Autumn 2002 East-West Conference in Vienna, an annual event organized by the Austrian National Bank, the volume deals comprehensiveley (in 8 parts and 29 chapters) with soci-economic structural challenges facing an Expanding EU. Issues covered include: competitiveness and the Lisbon goals; financial sector development; financing enlargement and catching up; tax, benefits and welfare reform; enterprise sector; the adequacy of the policy mix; and looking to the future.