This book explores how the European Union shapes the economic, social, institutional, and environmental development of its member states. Its analytical framework offers unique insight into recent developments in Europe, including the gradual loss of competitiveness, the slowdown in the convergence of some recently acceding Member States, and the divergence of the Southern European Member States from the global frontier of development. Weak and uneven institutions, resulting from the poor functioning of the institutional channel, prevent many Member States from fully realising the potentially large economic benefits of European integration, from converting economic progress into social progress, and from maintaining fairness across the different dimensions of development.Informed by evidence-based economic theory and real-world case studies, the evolution of European integration is presented in an accessible way, supported by graphs and summary points. It will be relevant to students, researchers, and policymakers interested in the economics and politics of the European Union.