This proposal focuses on three topics that are of major interest to the European integration process. All three issues deal with the potential impacts of asymmetries on the geographical distribution of economic activities; we investigate both the positive and the normative aspects and propose to develop models that allow for both a theoretical and an applied analysis.(1) We analyze whether the way indirect consumption taxes are levied matters for thr geographical distribution of firms and consumers and whet her a process of tax harmonization is required and desirable. Because the EU still has to agree on a definitive common tax principle, our conclusions may provide some policy guidance as to which principle of taxation the EU should adopt in the future and what the potential impacts may be.(2) We investigate how the eastern enlargement of the EU possibly provides some centrally located countries with transportation advantages in terms of accessing the larger markets of the Union. It is conjectured that such and quot;transportation gate countries and quot; may drain significant amounts of industry from the new entrants, hence leading to a more uneven spatial distribution of economic activities in the EU as the integration process proceeds. There hence seems t o be a fundamental contradiction between efficiency and regional equity.(3) Finally, we propose to develop operational models that allow for the simulation of the impacts economic integration in the presence of mobile production factors. Such models, that can be used for large-scale analysis and the prediction of the evolution of Europe and apos;s economic landscape, are scarce nowadays despite the need to better understand the ongoing changes. They may provide a valuable tool for policy guidance.