The EU has defined the development of a socially cohesive, knowledge-based economy as its central task for the present decade. Progress has been mixed. This book assesses the challenge and the policy instruments which are being deployed. It offers an integrated treatment of these economic, social and policy-related changes, in a form accessible to those who need a broad-based appreciation of their implications. It is addressed to the policy generalist but it also points towards more specialist literatures for those who require them. Additionally, The European Challenge looks at four key aspects of socio-economic transformation and policy response, explores what indicators may be used for policy benchmarking, and examines how different national communities can make effective choices.