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The purpose of this article is to provide a comprehensive comparative analysis of the economic performance, economic structure and trade relations of the Balkan countries, in order to detect basic trends and developments in the region. On the basis of this analysis, the article evaluates alternative scenarios regarding the prospects of the region in the evolving pan-European economic order and discusses policy responses to the pressures generated by the interaction of the integration and transition processes in South-eastern Europe. Copyright Joint Editors and Blackwell Publishers Ltd 2000.

The realization of economic convergence of the new member states is one of the biggest challenges that face EU. It raises important questions and problems for research; to determine what processes of regional development are taking place within the Union. In this regard, a key issue that arises and is related to the Bulgarian integration to the economic structures of the EU is the extent to which these processes have an impact on Bulgarian regional development. By applying statistical and economic methods the paper attempts to analyse these processes in the light of similar processes in the EU as a whole and by particular countries-to highlight the general and specific features in the Bulgarian regional development. According the "EU Regional Social Progress Index" and some of its sub-indices the specific places that occupy the Bulgarian regions on NUTS 2 among all other regions of the EU countries are compared and analysed. Based on the obtained results some policy implications are made.

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The article examines important aspects of spatial differences in three leading areas - social, economic and environmental. The main aim is to present the results of the development and approbation of an author’s methodology for assessing the existence of “inclusive regional development” – a development that does not lead to critical regional differences. The methodology is applied to assess the inclusive economic development in EU countries. Its application at a district level for Bulgaria allows to determine those of them that are the most problematic and do not meet the requirements for inclusive development in terms of economic, social and environmental dimensions. Lastly, the results of the research and analysis are summarized.