This volume provides an in-depth study of the economic principles underlying the decision to create and extend the scope of the European Community, and the development of policy ever since. It contains an updated survey of the decision-making institutions and a discussion of the new legislation including the Social Charter of 1988 and the Maastricht Treaty of 1992, which once more launched the Community on the path to Economic and Monetary Union. Other major aspects - transport and tariff barriers, fisheries and factor movements, foreign policy and defence, social, regional and industrial policy, energy and the environment - are given comprehensive treatment in this edition, and there is a new section on the challenges facing the European Union.