Regional fragmentation of the European Rim means that the EU must pursue policies to promote greater regional integration and cooperation.

How can the European Union encourage trade with its immediate neighbours? Peter Havlik explores the EU’s relationship with the ‘European Rim’, an area with a population nearly as great as that of the EU. He writes that in order to increase growth by taking advantage of EU markets, Europe’s neighbours must expand their export capacities and increase their competitiveness. The EU must, in turn, adapt the current approach to its periphery by promoting intra-regional cooperation and reducing regional barriers to trade and cooperation.