 Economic disintegration of the European Union: Not unavoidable, but probableActa Oeconomica, 2016, vol. 66, issue supplement1, 49-60 Abstract: It is argued that European integration has not fulfilled its chief economic promises. Output growth has been increasingly weak and unstable. Productivity growth has been following a decreasing trend. Income inequalities, both within and between the EU member states, have been rising. This sorry state of affairs is likely to continue – and likely to precipitate further exits, or eventually, the dissolution of the Union. However, this outcome is not unavoidable. A better integration in the EU is possible, at least in theory. Also, the negative consequences implicit in the existence of the common currency could be neutralised. However, the basic paradigms of the economic policies to be followed in the EU would have to be radically changed. First, the unconditional fiscal consolidation provisions still in force would have to be repelled. Second, “beggar-thy-neighbour” (or mercantilist) wage policies would have to be “outlawed”. Keywords: European Union; integration; disintegration; economic growth; productivity; race to the bottom (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aka:aoecon:v:66:y:2016:i:supplement1:p:49-60 Ordering information: This journal article can be ordered from Access Statistics for this article Acta Oeconomica is currently edited by Mihályi, Péter More articles in Acta Oeconomica from Akadémiai Kiadó, Hungary |
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