Framework of a macroeconomic policy in the quasi market economies : possibilities and necessities

Abstract

As it is well known the European Community has worked out a plan to form a single internal market by 1992 by removing all barriers which hinder the free circulation of productive factors- goods, services capital and labour forces. The aim of creating a totally free European market is to promote specialisation in the Community and so to strengthen the world market position of the national economies in the member states. Increasing efficiency requires free competition in all sectors and branches. Since there are countries in the Mediterranean region which are full members of the Community, and others that are non-members but are strongly connected with the European Community, economic policy in this region has to tackle all tensions and imbalances that will be ushered in after 1992. Demand within Europe is expected increase rapidly, but the Mediterranean countries would only be able to avail themselves of this new and extended demand only if they are competitive in structure, quality and prices.