Advertisement

Convergence Is Alive and Well in Europe

Inside and Outside the Euro Area
  • Daniel GrosEmail author
Chapter

Abstract

The convergence process in Europe has bifurcated: the new member states from Central and Eastern Europe are catching up in terms of income per capita, as one would expect, with the initially poorer ones growing generally at a faster pace, including those which joined the euro area. Within the euro area, however, the North has diverged from the South since the start of the financial crisis. This pattern, reflecting East–West convergence but North–South divergence within the euro area, can be observed for a number of indicators, such as real wages, investment and consumption. The available projections for the next few years suggest that East–West convergence will continue and that some North–South convergence might re-start.

References

  1. Diaz del Hoyo, J. L., Dorrucci, E., Heinz, F. F., & Muzikarova, S. (2017, December). Real Convergence in the Euro Area: A Long-Term Perspective (ECB Occasional Paper No. 203). Frankfurt: European Central Bank.Google Scholar
  2. EEAG. (2018). It’s Ok to Be Different: Policy Coordination and Economic Convergence. In What Now, with Whom, Where to—The Future of the EU (EEAG Report on the European Economy). Munich: European Economic Advisory Group, CESifo.Google Scholar
  3. European Central Bank. (2015). Real Convergence in the Euro Area: Evidence, Theory and Policy Implications. Economic Bulletin (5), 30–45.Google Scholar
  4. European Commission. (2018a). My Region, My Europe, Our Future (Seventh Report on Economic, Social and Territorial Cohesion). http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion7/7cr.pdf.
  5. European Commission. (2018b, February). Sustainable Convergence in the Euro Area: A Multi-dimensional Process. Quarterly Report on the Euro Area, 16(3), 3–24. https://ec.europa.eu/info/sites/info/files/economy-finance/ip072_en_i_sustainable_convergence_euro_area.pdf.
  6. Franks, J., Barkbu, B., Blavy, R., Oman, W., & Schoelermann, H. (2018, January). Economic Convergence in the Euro Area: Coming Together or Drifting Apart? (IMF Working Paper WP/18/10). Washington, DC: International Monetary Fund.Google Scholar
  7. Goecke, H., & Hüther, M. (2016, May/June). Regional Convergence in Europe. Intereconomics, 51(3), 165–171.Google Scholar
  8. Merler, S. (2016). Income Convergence During the Crisis: Did the EU Funds Provide a Buffer? (Bruegel Working Paper). Brussels: Bruegel.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Centre for European Policy StudiesBrusselsBelgium

Personalised recommendations