ABSTRACT
This chapter examines some of the problems presented by the international recession of the 1970s and the policies developed to deal with them. It concentrates on the so-called sensitive sectors. The chapter reviews some suggestions about the policy measures which will have to be taken at the Community as well as the national level in order to meet the challenge of enlargement. On the basis of the existing structure of trade between the three applicant countries and Community members, as well as the degree of trade liberalisation reached before enlargement, one can say that free industrial trade which is an integral part of European Community membership would be expected to have a negative effect on the balance of payments and the manufacturing sector of the three countries. The chapter examines whether the adoption of Community rules as regards the free movement of labour and capital is likely to have an important effect on the industrial sector of the three countries.
