Chapter 1 The Dynamics of the EU Core-Periphery Division: Eastern vs. Southern Periphery – A Comparative Analysis from a New Economic Geography Perspective

The last enlargements of the European Union (EU) shifted the geographical focus of the periphery from the south to the east, upgrading the position of many southern European countries and regions, which were already in a process of convergence with the EU average. The current financial/economic crisis, however, which has particularly hit southern European countries, revitalized the traditional core-periphery division, known as the North-South divide. In parallel, the relocation of economic activity (industrial production and services) within the EU territory, from western-core countries to the eastern periphery, raised the competitiveness and economic significance of many areas in the new, vis-a-vis the old, periphery, leading to the emergence of a number of new centres in its metropolitan regions. A number of questions are raised in the context of the above development, such as: Which factors underlie the differences in growth paths and ‘resilience’ between the eastern vis-à-vis the southern periphery? How important has the industrial relocation from the West to the East been? And what has been the general impact of the EU’s Cohesion Policy? What would the implications of a possible further expansion towards the EU’s ‘Eastern Neighbours’ be on its core-periphery pattern? This chapter approaches critically some of the above issues, adopting a qualitative methodology with the use of graphical presentations. In its conclusions, the chapter examines the appropriateness of the new economic geography’s theoretical interpretation.