Subnational Regionalism in a Supranational Context: The Case of Hungary

Abstract

European economic integration drives a political economy of regionalism that defines the principal axis of political-economic division in the New Europe. The New Economy drives a radical shift in EU policy from cohesion or redistribution toward innovation promotion, affecting distributional struggles and policy approaches at the EU, national and subnational levels. Shifting strategies pose significant challenges at the national and subnational levels with important implications for future EU, national and subnational economic and regional development policy goals. At the national level, and in particular less developed economies, the New Economy creates incentives for the increasing centralization of decision making.

Keywords: European integration, subnational regionalism, New Europe, economic development, Central and Eastern Europe

JEL Classification: F15