synchronization (BCS) in the EU. We estimate the effects of market integration and economic policy coordination on bilateral business … positive effect on BCS, particularly between incumbent and new EU members. (2) Rising specialization does not decouple business … cycles. (3) The decline of income disparities in EU27 contributes to BCS, as converging countries develop stronger trade and …

We test for real interest rate convergence in the EU25 area. Our contribution is twofold: first, we account for the … have important implications relating to the single monetary policy and the progress new EU members have achieved towards …