European Union: unification and convergence

As we embark on the tenth anniversary of the first introduction of the euro, it is befitting to take a step back and ask ourselves: have the economies achieved their economic goals set forth in the Maastricht Treaty and reaffirmed in the Treaties of Rome and Accession? Have they achieved economic convergence that was to be assured with the onset of the EU? This paper divides 30 European countries into 4 subgroups and assesses whether the groups have experienced a change in their overall and respective economic convergence rates. Per capita GDP, real-interest rate, lending interest rate, inflation rate, central government debt and deficit are analysed for evidence of convergence. The findings provide mixed results; rates of convergence vary by country and between the four subgroups. The study confirms that most countries have made progress towards convergence, however, convergence rates among and within subgroups are not in sync.