Since the fall of Communism, countries such as Hungary and Poland have experienced a spectacular transformation into democracies with market economies. Ten countries in central Europe have now applied for membership of the European Union, which they regard as the final step on the road back to the heart of Europe. For the European Union, this enlargement provides a significant challenge to its capacity for change and flexibility. In this book a former leading European Commission official investigates the relationship between the European Union and countries of central Europe as it is today. He examines the detail of the association agreements, and provides the first analysis of their operation in key areas like trade and competition policy. Part III of the book considers the costs and benefits of enlargement and investigates the key problems in both east and west, including the Common Agricultural Policy, EU structural funds, budgetary policy and migration. Finally, the book investigates alternative strategies for enlargement.