This yearly report aims to examine and monitor process of European integration, and analyses the growing role played by EU institutions (Parliament, Council, Commission, Court of Justice) in shaping - through several legislative instruments - the rules governing an increasing number of sectors of the European economy. Itt is a rigorous, albeit non-technical, analysis of a wide range of topics, from the Euro takeoff to competition policy, from the diffusion of the principle of mutual recognition to the consequences of the EU "enlargement" towards Central-Eastern Europe.The report is written in an accessible way focusing on different topics each year depending upon their relevance and current importance. It will be a useful resource for academics and policymakers, journalists, and government advisors.