"This article provides new evidence on progress in transition and the ‘readiness' for accession of enterprises in two EU applicant countries. A major innovation is to benchmark them against Spain. Approximately 200 manufacturing firms were surveyed in each of Poland, Romania and Spain. Newly-established private firms in both Poland and Romania are found to be growing the fastest, but on measures of integration and investment, it is new and privatized Polish firms that most resemble Spanish ones. Polish state-owned firms, and most Romanian enterprises, typically are less integrated. Polish firms tend to lag behind Spanish ones in complying with EU directives, but are ahead of Romanian ones, although awareness of and compliance with directives does not vary with ownership type. Progress in transition at the country level seems to be consistent with improvements in compliance with much of the acquis communautaire."

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