Relevance of Krugman-Eichengreen Effect, Theory of Comparative Advantage and Theory of Competitive Advantage for the Enlarged Europe Convergence Process

Long term prospect and perspective of well-being of the enlarged Europe depends to great extent form the efficiency of convergence process between wealthy and more or less (relatively speaking) poor members of the EU. Mainstream economic dogma speaks in favor of trade liberalization and globalization as main driver for economic growth of less developed countries in particular. On such a postulate one can expect that "Hands off" sort of economic policy, followed by total trade openness of the economies of less developed members of the EU, is going to stimulate economic convergence of those members with the "old club members".Theory of Comparative Advantage supports and does not supports such a claim Theory of Competitive Advantage may and may not support the same main stream expectations. And Krugman-Eichengreeen's effect argues against trade openness and full economic liberalization between countries with different levels of economic development and well-being exposed in the same time to "hands off" sort of economic policy.What could be the position and future of Enlarged Europe depends to a great extent from the understanding of the afore-said theories and arguments, we will try to elaborate in the paper