This publication is a special edition devoted to the 10th anniversary of the Barcelona process. It reflects ongoing work within the Unit "Economic Affairs of Mediterranean Countries, Russia and the New Independent States. Economic Aspects of the Neighbourhood Policy" in the Directorate for International Economic and Financial Affairs (DG ECFIN). This report does not necessarily reflect the official views of the European Commission. The main purpose of this issue is to provide,

• first, an assessment of the economic aspects of the Barcelona process and,
• secondly, to give an overview of recent macroeconomic and structural developments in the Mediterranean countries part of the Euro-Mediterranean Partnership.

The structure of this issue is as follows:

• a broad assessment of progress towards the objectives of the second Barcelona pillar, i.e. creation of an area of shared prosperity;
• an evaluation of the impact of the Barcelona Process on trade and FDI;
• an assessment of the business environment in the Mediterranean region;
• a broad review of recent macroeconomic developments in the region;
• country specific sections on the main economic developments in 2004.