Part 1: Economic change: the Euro-Mediterranean free trade zone: economic challenges and social impacts on the countries of the South and East Mediterranean, Alvaro Vasconcelos and George Joffe foreign investment and the rule of law, George Joffe. Part 2: The political process: political transition in the Middle East, May Chartouni-Dubarry democratization in the Mashreq: the role of external factors, Mustafa Hamarneh political reform and social change in the Maghreb, Gema Martin-Munoz. Part 3: Security issues in the Mediterranean: towards a new WMD agenda in the Euro-Mediterranean policies of arms control: an Arab perspective, Mark A. Heller arms control in the Mediterranean area: a European perspective, Pascal Boniface the Euro-Mediterranean security partnership: prospects of arms limitation and confidence-building. Conclusion: challenges and prospects, Roberto Aliboni and Abdel Monem Said Aly