This volume contains a selection from the papers presented at the conference on ‘Finance and Development in Europe’, jointly sponsored by the Centre for Economic Policy Research and the Xunta de Galicia. The conference was part of the CEPR research programme in International Macroeconomics, and was hosted by the Xunta de Galicia in Santiago de Compostela on 13–15 December 1991. We gratefully acknowledge the Xunta's impeccable hospitality and financial support.

I would like to thank a number of individuals who have contributed to the success of this project. First and foremost is Guillermo de la Dehesa, a member of the Centre's Executive Committee, who encouraged me in the pursuit of the project, organized the conference with me, and put CEPR in contact with the sponsors. Guilllermo's enthusiasm is a powerful engine of CEPR activities. David Guthrie and Kate Millward have pushed this volume through the various production stages with unfailing energy and determination. John Black of the University of Exeter, as Production Editor, has helped maintain the high standard of CEPR publications.