Since 1999 the EU has achieved considerable success in the convergence of economic growth, income and social conditions. The EU doesn�t need to fear the comparison with other highly developed countries and areas of integration. However, while especially the Central and Eastern European member states have caught up lately, the growth of the southern periphery has collapsed as a consequence of austerity policies. Only with an intelligent mix of common economic policy and policy leeway for member states can divergence be avoided and the successful European model saved.