Economic patriotism and the challenge of convergence in the EU periphery

Abstract

This thesis, primarily focusing on the notion of economic patriotism and the theory of Varieties of Capitalism (VoC), discusses how neoliberal-driven economic integration observed in the last decades between different capitalist regimes that show diverse development trajectories has led to divergence, rather than convergence. Along the lines of economic patriotism, decision-makers now face the constant challenge of satisfying the demands of their electorate in a complex and interdependent regulatory environment, in which most economic governance tools are not under their control, while as a result of spatial and economic integration, national goals often contradict supranational ones. Under this pressure, economic policy has to become creative and maneuver between constraints and opportunities in order to keep a balance between the two. At the center of analysis in this case is the European Union and its so-called ‘periphery’, where the long-awaited convergence based on free market fundamental-ism has yet to be achieved with patterns actually indicating the exact opposite. Evidence how-ever vindicates, that nations which have applied ‘patriotic’ economic policies in the past but also nowadays, have shown greater signs of convergence to their most developed peers.