So what has driven the different convergence trajectory of countries, and how much is it related to membership of the euro? Convergence can be thought of in two ways. The first is convergence of real GDP per capita levels. This is a long-term process which is driven by factors such as rates of FDI, productivity growth and institutional quality.
Such factors can be fostered by sharing a single currency, but they are not determined by it. Domestic policies, structural and institutional reforms, and contributions from EU structural funds are what play a crucial role here. The second concept of convergence relates to growth rates, i.e. how much business cycles across countries are synchronised, especially when major shocks hit.