DIVERGENT REAL ECONOMIES IN EUROPE

In this paper, the well-known convergence programmes implemented by th e EU member-states are closely evaluated. Using descriptive statistica l analysis and the changes in the real exchange rates as analytical co rnerstones, the paper focuses on the economic performance of the membe r-states since the accord (December 1991) and the ratification (Februa ry 1992) of the Maastricht Treaty. Changes in the trade balance, indus trial production, rates of unemployment, inflation and interest rates (short-term and long-term) are used as criteria of success in both rea l and nominal terms. The statistical outcomes are compared with those found in similar research done by Gordon. The paper ends with the eval uation of the results and the policy lessons which can be drawn by the different exchange-rate policies followed by the member-states.