This chapter examines how the enlarged EU is likely to respond to three major economic challenges: Will the enlarged EU attempt to bridge the internal development gaps by flexible policies stimulating growth or by central redistribution from Brussels? Will the enlarged EU cope with the challenge of global economic competition by opting for more institutional differentiation or central regulation? Will it try to insulate itself from poor and unstable neighbors or try to govern them? In all three cases, the enlarged EU is more likely to embrace the neo-medieval rather than the neo-Westphalian alternative.
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