Regional Convergence in Europe

Abstract

Convergence among regions is explicitly defined as a political aim of the European Union. Overall, NUTS3 regions have indeed shown a path of convergence since the year 2000, but there are huge differences among the regions. Many Eastern European countries as well as several regions in Spain and Portugal are characterised by a convergence process. However, the opposite holds for many regions in Greece, Italy and the UK. The size of a region’s manufacturing is important for the process of convergence, and the direction of subsidies from the EU to the right fields of activity also has a positive influence on the probability of a region to converge.