This topical book addresses the challenge of economic convergence within Europe, beginning with a thorough review of the theory of growth and related empirical research. Historical and more recent economic developments within the present EU and current accession countries are discussed, along with the design for the process of further integration of accession countries into the EU and the Euro area. Moreover, the potential to achieve a sustainable catch-up process in Western Balkan countries, the Ukraine and Russia is explored, focusing on the task facing the EU in designing proper policies vis-a-vis these countries. The contributors' varied perspectives ensure that the theories and policies postulated are linked closely with the actual situation in accession countries and offer up to date insights. INDICE Introduction - welcome remarks from the 2001 conference introductory session past convergence within the European Union accession countries - achievements in real convergence accession countries - how to balance real and nominal convergence? challenges for monetary and exchange rate policy does the financial sector contribute to real growth? is there somebody left out in the cold? prospects of CEE countries other than current accession countries policy challenges within the (enlarged) EU - how to foster economic convergence.