European Integration: Some stylised facts

4. Closing remarks

Returning once more to the main question whether the European economies
have evolved towards one European economy, the answer is yes, but there is
still a long way to go before we can truly speak of one perfect integrated
economy.

It is obvious that the economies of the EU Member States have become more
integrated in recent years. Monetary integration is particularly advanced as the
differences in interest rates and inflation between the countries have been
almost eroded. Looking upon the changes in total output and employment the
results are less clear. There are still substantial differences in the level of
unemployment and standards of living, and there are no definite signs that the
development in business cycles between individual Member States have
become more synchronised. National characteristics have thus not been blurred,
even if in a number of areas, the economic differences between the member
countries have decreased.

The antagonism between unity and diversity still characterises the European
Union at the turn of the century, also in the economic sphere. It makes sense to
perceive Europe as one economy, but at a closer look, the individual economies
of the Member States are still discernible.

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