The project formed one of the background research studies written in preparation for the European Commission’s Second Cohesion Report (adopted in January 2001). The study analysed the economic characteristics of enlargement and the patterns of regional disparity (eg. for GDP, unemployment and employment) in the Central and East European Candidate Countries and the current EU Member States. The types of regional problem evident in the Candidate Countries were identified, in part through a cluster analysis, and compared to the main regional problem categorisations in the EU-15. The study also looked at certain critical issues of enlargement – trade, investment and migration – including their potential regional and social impact. The final part of the research focused on projected patterns of disparity and the range of policy options and issues facing the design and delivery of future EU structural and cohesion policy in an enlarged EU. While the study focused on the ten Central and East European Candidate Countries, the research also looked at the projected impact on cohesion of the accession of the island economies of Cyprus and Malta.