During the negotiation and implementation stages of the ‘1992’ Single Market programme, prominent economists anticipated that the pressures for industrial restructuring among EU1 countries would be considerably stronger than during previous episodes of European integration. Krugman (1987, p. 364) states: ‘The question now is whether the further expansion of trade in progress will be equally easy to cope with. The unfortunate answer is, probably not.’ Greenaway and Hine (1991, p. 620) suggests that: ‘specialisation in Europe may have entered a new phase, and that this could pose greater problems for adjustment’.