European integration in crisis

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Despite recent growth and rising employment in the EU, European integration faces significant challenges. The economic performance of the EU, particularly the Euro area, has fallen behind that of the USA and other global regions. Additionally, economic divergence among EMU member countries poses serious issues, exacerbated by the inclusion of Middle and Eastern European nations, which has increased both nominal and real differences. The EU's ability to address these disparities and the existing trends of divergence among older member states remains uncertain. This collection explores theoretical, empirical, and political dimensions of European integration. It includes a critical examination of optimum currency area theory and the implications of the Maastricht Regime. The analysis covers monetary, fiscal, and wage policies, along with their coordination within a monetary union. Country-specific studies further enrich the discussion. Key topics include macroeconomic policy analysis in Germany, lessons from the Euro-zone, Keynesian interpretations of optimal currency areas, and the challenges of economic divergence in the Euro area. Contributions also address the coordination of macroeconomic policies, inflation differentials in EMU, and the European Central Bank's effectiveness, questioning the sustainability of the current economic framework.