Further European integration will increase the incentives for regional specialization of economic activity. People and firms will increasingly cluster together with those that share their particular know-how and skills. Will this lead to a polarized Europe, in which some regions buzz with activity while others decline? Not necessarily - but the danger is there. The central message of the tenth Monitoring European Integration report is that polarization is not inevitable: growth and cohesion are not necessarily enemies. Unless misguided policies determine otherwise, they are allies.
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