EMU versus the regions? Regional convergence and divergence in Euroland Ron Martin* Abstract Thereiscurrentlyconsiderableinterestinanddebateovertheimpactofincreasing EuropeaneconomicandmonetaryintegrationEMU)ontheregionsoftheEU.Opi- nion is sharply divided over whether EMU is leading to regional economic con- vergence or regional economic divergence.This paper examines the theoretical argumentsandempiricalevidencefortheseopposingviews,andpresentssome additional analysis of patterns of regional productivity trends and employment growthovertheperiod1975^98.Thepicturethatemergesisacomplexone:whilst workerproductivity showsonly very weakconvergenceacrosstheEUregionsa process which halted altogether after the mid-1980s), regional employment growthhas been sharply divergent. Although there is little support for the claim that EMU will lead to regional convergence, these findings suggest that until muchmore detailed investigation of the specific impacts on particular types of region is undertaken,the regional implications of EMU will remain a contentious issue. Keywords: EMU, regions, convergence, divergence, productivity, employment JEL classi®cations: O18, O52, R11, R23 1. Introduction Over the past two decades, the European Union has made major moves towards the goal of economic and monetary integration. The Single European Act of 1986 set the framework for the abolition of the last remaining obstacles and barriers to an integrated single market for goods and services, and the Maastricht Treaty of 1993 established the programme for European monetary union and an integrated capital market. As part of this programme, the beginning of 1999 saw the introduction of a single European currency Euro) and a European Central Bank ECB). At the time of writing, 11 of the 15 member states of the EU have signed up to monetary union and the Euro. Much of the discussion surrounding the formation of this `Euroland' has focused on the so-called `national convergence criteria' the monetary conditions required for states to qualify for membership of the Eurozone, relating essentially to price stability, low interest rates, & Oxford University Press 2001 Journal of Economic Geography 1 2001) pp. 51±80 *Department of Geography, University of Cambridge, Cambridge CB2 3EN, UK. email <rlm1@cam.ac.uk>