Regional economic inequalities are increasing in most of the European Union (EU) member states, while between-nation inequalities in the enlarged Europe are declining in the last years. The economic differences between East and West Europe are gradually diminishing and the EU is becoming a relatively homogeneous economic, legal, and political field, which promotes social and economic cohesion in Europe (at a rate of approximately 2 per cent per year). Most of the regional economic inequalities are already inequalities within nations. The economic and income inequalities in the enlarged EU can be largely explained by different regional employment patterns, industrial structures and the region's location within the European space: central urban regions with a good research and traffic infrastructure, qualified employees, a high employment rate and knowledge-intensive services are the best predictors for high income levels. The slow convergence process in the enlarged EU may not increase popular support for the European integration process because the most important frame of reference is still the nation-state where regional inequalities are increasing.
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