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This volume deals mainly with how changes in the production system are affecting the urban system and the division of labour in Europe. It examines how policies and societal intervention have to take new flexible production systems into account. The first part of the book deals with the theoretical treatment of changes in the production system and the applications of the concepts to Western, Southern and Eastern Europe. The second part examines the processes at a series of different geographical scales extending from the global, through national, regional and urban to local labour market and household. The third and final part of the book deals with policy intervention and its impact on centralization and decentralization not only for administration and governance but also for corporate structure and with the economic and political rationale for intervention.