Abstract
The European Union was going through major changes in the late 80's and early 90's. In this paper, I focused on goal shifts which were followed by instrument adjustments during the 90's.
I consider this period a breakthrough in development of European economic integration because not only integration activities were intensified within the union but also the external environment changed significantly. In this period, work on preparation of the single (internal) market reached its climax, the Maastricht Treaty changed the approach to the Community and codified another goal -- building economic and monetary union.
Political changes in Eastern Europe have become another challenge which modified the integration process. These fundamental changes marked the development of the European Union to its present state and had to influence every-day practice in member countries.
In reality, this means adopting new procedures in areas which were crucial to reaching the newly defined goals. Key changes took place notably in industry; competition; regional and structural; social; and external economic relations sector policies.
This paper does not examine how goals, e.g. building of the single market and economic and monetary union, have been met but how the set of instruments -- the aforementioned sector policies -- has evolved over time. Western Europe differs from other regions in the World by its unparalleled social standards, which are becoming an obstacle to Europe's competitiveness.
Institutional protection of the labour market, including high environmental standards, is becoming a cost burden of European businesses. Rigidity of labour markets, tax systems, and legislation is another factor behind lower economic growth in Europe.
In Lisabon in March 2000, the union declared another strategic goal -- to become the most competitive economy of the World by 2010.