The historic rapprochement that began with the fall of the Berlin Wall fifteen years ago saw eight former Communist countries (plus Malta and Cyprus) become members of the European Union —the world's largest capitalist club —in 2004. Unsurprisingly, accession has brought with it significant challenges for both the new members and the EU-15. For the former, greater access to European markets is mitigated by constant calls for tax harmonisation, and their comparative workforce advantage is ever more encumbered by regulation and prohibitive 'minimum standards'. These are sources of great friction between the competing member states, as the previously sheltered economies of 'Old Europe' struggle to compete with efficient foreign competitors. The rapid ageing of Europe's population over the next few decades is likely to exacerbate these tensions. Current budget deficits and levels of national debt will appear insignificant as the cost of maintaining the continent's bountiful welfare system become increasingly apparent. Economic growth and productivity will level off and begin to decline as an ageing workforce is unable to replace itself. Commensurately, government programmes that rely on current revenue streams will fail to meet the ever increasing demand for healthcare and social security. As conditions worsen, socialism and protectionism will seem all the more appealing to the public, and government's populist instinct to centralise power will only strengthen.