This volume continues to develop the themes outlined in the previous volume concerning the way in which the necessity of an industrial policy is constrained by the emergence of supra-national economic forces.The argument demonstrates the extent to which E.C. competition policy and the SEM programme run in a contrary direction to the idea of an industrial strategy. The achievement of the SEM restricts government intervention and therefore blocks the possibility of developing the regulatory framework necessary for an EC wide industrial strategy. The thesis therefore argues that the process of EC integration is inherently flawed and will shift Europe more towards the deregulated US model and away from the flexibly coordinated systems more in keeping with the European tradition. The bulk of the focus in this volume falls on the Rhenish-Scandinavian models of the social market economy. These models are shown to combine greater levels of economic efficiency and social justice and equality than the liberal economies of the US and UK.