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It is argued that European integration has not fulfilled its chief economicpromises. Output growth has been increasingly weak and unstable. Productivitygrowth has been following a decreasing trend. Income inequalities, both withinand between the EU member states, have been rising. This sorry state of affairsis likely to continue – and likely to precipitate further exits, or eventually,the dissolution of the Union. However, this outcome is not unavoidable. A betterintegration in the EU is possible, at least in theory. Also, the negativeconsequences implicit in the existence of the common currency could beneutralised. However, the basic paradigms of the economic policies to befollowed in the EU would have to be radically changed. First, the unconditionalfiscal consolidation provisions still in force would have to be repelled.Second, “beggar-thy-neighbour” (or mercantilist) wage policies would have to be“outlawed”

Economic disintegration of the European Union: Not unavoidable, but probable