We're all European these days

Miroslav Jovanovic looks at the economics of the European Union with a pro-integration stance, as so many other authors do: there is a gain from a more efficient allocation of resources where harmonisation eliminates economic distortions and redistribution policies compensate the "losers". However, Jovanovic is an experienced writer who combines a strong theoretical basis and an accurate view of international economics. His representation of the economic theory, history and effects of the "Eastern"

enlargement and the prospects for integration is far superior to other books on the subject. Each chapter covers an area where the EU plays a role, and Jovanovic explains them all superbly. Moreover, the text suits everybody. A pro-integration reader can find many arguments that suit his views. A Eurosceptic may also find some interesting points, although tempered by pro-EU reasoning.

Jovanovic's pro-integration stance is seldom punctuated by a biased approach, however. When discussing monetary integration, all costs are presented with a counterargument, while benefits are simply listed with the explanation that it is difficult for non-economists to understand their significance.

In agriculture, Jovanovic uses non-economic arguments to justify the Common Agricultural Policy while disdaining trade diversion effects and the harm they do to developing countries. Nevertheless, he does not avoid the main criticism of the EU - the lack of democratic legitimacy of its elitist-driven process.

The book is essential for students in European studies, international economics and business or international relations at both graduate and postgraduate level. However, its economic theory sometimes lacks the simplicity and clarity that students require. Moreover, it has no ancillaries other than some useful websites and a good bibliography.

Ricardo Pinheiro-Alves is lecturer in economics, Universidade da Beira Interior, Portugal.