Contents I. Introduction II. The EU's Membership Conditions: Assessing Fulfillment A. The economic criteria for enlargement Progress in creating a functioning market economy i) Indicators of macroeconomic performance ii) Progress in microeconomic restructuring and privatisation Capacity to cope with competitive pressures and market forces in the Community Acceptance of the acquis communautaire concerning the Single Market B. The political criteria for enlargement III. Consequences of Enlargement in Stages A. Institutional implications B. Implications for budgetary expenditures and receipts Additional spending through the structural funds Additional spending on the CAP Expected contributions to the EU budget C. Economic implications The impact of enlargement in stages on trade The impact of enlargement in stages on agricultural trade The possibility that firms remaining outside the EU lose their relative competitiveness The impact of enlargement in stages on foreign direct investment in the CEECs The impact of enlargement on growth Possible implications of enlargement in stages for the location of industry Labour migration D. Implications for security and foreign policy IV. Managing Enlargement in Stages V. How to Grasp Diversity: Institutionalise It? Appendix of all tables and figure 1