Abstract
Spain's recent entry into the European Economic Community (EEC) provides a good opportunity to study the impact of economic integration on a relatively small country. The EEC goal to become a single market by the end of 1992 requires, on the one hand, the elimination of all barriers to the movement of goods, services, labor, and capital within the community boundaries and, on the other, a certain harmonization of the legal setting in which economic activity takes place. The paper studies the impact on the Spanish economy of policies undertaken, or still under consideration, by the community in its attempt to complete the internal market. More specifically, we examine the effects of (1) the elimination of barriers to trade; (2) the liberalization of the financial sector and capital flows; and (3) the fiscal harmonization of indirect taxes.
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