Shall EU Survive? EU on the Verge of Balkanization: The Impact of Economic Theory and Economic Policy on the Future of EU

  • Abstract:

    The future of the EU seemed fogy at the end of 2011. The EU might eventually prove efficient and able to survive discovering its own and new way out of the ongoing 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-regions 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 a dead end for EU. The more EU gets enlarged the more the EU is prone to Balkanization. In the paper I try to analyze the future position of the EU depending upon accepted system of values within the EU and the chosen economic paradigm to fight a crisis. I conclude that the EU is more prone towards the syndrome of balkanization than to an efficient political union.