This course aims at providing the students with a basic understanding of the interaction between politics and the economy in the integration of European. The course will first underline the historical and socio-economic context of European integration in the aftermath of World War II. Second, the course will focus on the dynamics of markets and government policies as they shape one another in the newly emerging institutional framework of EC and EU. Third, the course will analyse the challenges for the European economies and polities in present day global economy and increasingly volatile international relations with their newly developing alliances and institutions.