The report analyses globalisation and the policy challenges it poses for Europe. The report comprises 13 articles by European experts, the first describing the globalisation phenomenon and its consequences in the light of latest economic research, followed by three commentary articles to supplement the globalisation analysis. EU competitiveness and EU countries’ structural policy are then surveyed in general. Two articles examine the EU internal market, while four articles analyse innovation policy widely. The final two articles discuss political governance of global and European economic policy issues.