Abstract
The European Economic Community (EEC) plan of market integration in 1992 and thereafter - perhaps the most ambitious commercial union in history - extends far beyond the production and trade of goods and movements of labor to include financial and business services of a variety of types. Indeed, the repercussions from the liberalization of Western Europe's capital markets may equal or surpass its impacts on the agricultural and manufacturing sectors. Because the industrial structure, trading patterns and government regulation of financial services differ considerably from those of manufacturing, the economic and geographic consequences of 1992 for banking, insurance and securities also will be different. This paper examines the changing industrial and spatial structure of the EEC's financial markets and their linkages to the USA.
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