It is a trick of history that Eastern Europe's quest to build viable market economies and democratic policies takes place in a period of diminished economic vitality of Western Europe. This stark reality affects national policies and real economic and political dynamics, the prospects for European integration. Major opportunities and threats posed by Europe's 'compounded' problem arise from the increasing salience of economic issues for national security concerns. This book tries to look analytically at the economic problems afflicting Europe and their implications for European security; it argues that dealing with these problems requires an understanding of longterm trends in the world, vision, and courage on the part of national governments and the bodies which articulate European-wide interests. The need for a true philosophy of integration in Europe is stressed.