1992

All the economic research into 1992 was commissioned and paid for by the European Commission which, naturally, makes strong claims for the economic benefits likely to flow from the Single Market. There is, therefore, scope for an independent critical evaluation of the costs and benefits of 1992. The Right lauds 1992 as a further triumph for free markets: the Left as a means of getting otherwise unobtainable progressive social policies. Yet closer scrutiny raises serious doubts about the validity of the claims and hopes on both sides. The authors examine the European Commission's micro-economic model of Europe, on which the claims are based, and highlight a series of questionable and implausible assumptions contained therein, particularly on the likely economies of scale and the so-called positive effects of competition and merger. They also raise the question of British manufacturing - already suffering from a massive redistribution of output and employment to mainland Europe - which, in their opinion, can only suffer further loss after 1992.