Cross-Country Versus Cross-Regional Convergence in the European Union: An Empirical Exploration

The successful completion of European integration may by any measure be considered as one of the best achievements in modern European history. In spite of some outstanding pitfalls (i.e., monetary union despite fiscal decentralisation, and not no unanimity when it comes to foreign policy issues.), overall the integration process should be considered a turning point and milestone as a response to the process of globalisation and regional integration elsewhere in the world. This allows and will continue to allow the entire group much better bargaining power on the global stage, politically, economically and in other strategic areas. The implications for European transition economies are several in nature.