This volume collects many of the contributions to a conference organized by Banco de Portugal and the Centre for Economic Policy Research on Economic and Monetary Union (EMU) held in Estoril on 16/18 January 1992, at the beginning of the first Portuguese presidency of the European Community.

The conference programme was carefully designed for more than a year, when I was on leave from Banco de Portugal and Universidade Católica Portuguesa at the Centre for European Policy Studies in Brussels. Its preparation benefited from a grant of Fundação Luso Americana para o Desenvolvimento to study the long-run implications of EMU cum the European Internal Market for a country such as Portugal. This volume constitutes certainly the most valuable outgrowth of that project. During that period I received inestimable advice from Daniel Gros, Paul de Grauwe, Niels Thygesen and, especially, from Francesco Giavazzi, who became an active co-organizer and enhanced the academic authority of the project.

The Board of Governors of Banco de Portugal agreed on co-organizing and sponsoring the conference. António Borges, who promptly welcomed the idea, followed the entire organization process with great enthusiasm, much institutional and personal commitment and excellent suggestions. The tireless dedication of Irene Lemos, head of conference staff, contributed much to the success of the conference.