EU on the Verge of Balkanization: the Impact of Economic Theory and Economic Policy on the Future of EU

Dragoljub Stojanov
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Dragoljub Stojanov: University of Rijeka, Department of Economics

Ekonomija Economics, 2012, vol. 19, issue 1, 101-118

Abstract: The future of the EU seems fogy in the mid of 2012.. The EU might eventually prove efficient and able to survive discovering its own and new way out of crisis. Flexible markets and neoclassical economic paradigm might become a new economic and political fashion within the EU. The EU might be split into smaller parts if a new sort of interventionism-Keynesianism economic policy prevails. “New Economy “ may form mega-region as a new substructure within the territory of the EU. National states might melt down and be transformed into mega regions. Economic history teaches us that neoclassical economy leads rather to divergence than to convergence between unequally developed countries. Difference between the richest and the poorest members of the EU in terms of GDP was 1: 4, 9 in 1986. In 2007 the difference was increased to 1: 20. Economic divergence means dead end for EU. In the paper we try to analyze the future position of the EU depending upon accepted system of value within the EU and chosen economic paradigm to fight a crisis. We conclude that EU is more prone towards syndrome of balkanization than to efficient political union.

Keywords: EU; development; economic paradigm; balkanization (search for similar items in EconPapers)
JEL-codes: F15 F59 O10 (search for similar items in EconPapers)
Date: 2012
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