The deadline of January 1993, marking the full liberalization of capital movements, combined with the additional changes implied by the integration into the European Community (EC), represents a formidable challenge for Spain. The behaviour of all economic actors will be deeply affected as the traditional autarkic structure of the Spanish economy will be rapidly eliminated to give way to a more modern, but also more dependent, economy. In particular, the authorities will have to reassess every aspect of economic policy. The right reaction to these changes will determine whether Spain can be included in the club of richer northern EC countries or whether it will remain a peripheral state in the Community.