Promoting Development and Stability through a Euro-Mediterranean Free Trade Zone?

THIS PAPER WILL OUTLINE AND DISCUSS THE MAJOR ECONOMIC FEATURES OF THE EURO-MEDITERRANEAN PARTNERSHIP PROGRAM AS LAUNCHED IN BARCELONA IN 1995. THE OPTIMISTIC VIEW OF THE EUROPEAN UNION (EU) REGARDING THE DEVELOPMENTAL IMPACT OF A EURO-MEDITERRANEAN FREE TRADE ZONE WILL BE QUESTIONED. MAJOR PROBLEMS WILL ARISE IN THE MEDITERRANEAN COUNTRIES DUE TO STRONG COMPETITIVE PRESSURE, GROWING TRADE DEFICITS, SUBSTANTIAL REVENUE LOSSES AND THE POSSIBILITY OF REDUCED, RATHER THAN, INCREASED INFLOWS OF FOREIGN DIRECT INVESTMENTS. FINALLY IT IS ARGUED THAT THE POLICY OF THE EU CREATES OBSTACLES TOWARD REGIONAL ECONOMIC INTEGRATION AND COULD PROVOKE THE RADICAL TYPE OF ANTI-EUROPEAN OPPOSITION WHICH IT WAS ESTABLISHED TO PREVENT.