The study analyses macroeconomic policy-making in the European Union and the role of the European Parliament in it. There are three parts to the study. The first is concerned with policy-making procedures. The second analyses the implementation of the Broad Economic Policy Guidelines (BEPGs) and the stability and convergence programmes (SCPs) of the member states. The approach followed in this part is a combination of sectoral (labour markets, product markets, financial services markets, entrepreneurship, knowledge-based economy) and country-specific analysis. The third part provides a review of economic and economic policy convergence up to the year 2003 on the basis of current forecasts. Policy recommendations for the BEPGs 2002 are included.