Economic growth and its challenges in the EU

The author analyzes the characteristic features of the economic growth mechanism of the European Union mainly on the example of the joint development of its 15 most advanced countries before Brexit. The theoretical framework of the study includes key postulates of the theories of growth and integration. The described economic and mathematical models allow us to study economic growth from both the demand and supply sides. The analysis of practical issues of the functioning of the growth mechanism covers both internal and external factors. Internal factors can be directly influenced by economic policy. Its important component in the case of the EU is the formation of the common budget. External factors, such as terms of trade, exchange rates and capital flows, are considered separately. All this supports the hypothesis that internal and external factors can equally influence positively or negatively the process of European integration. A separate part of the monograph is devoted to Germany as the leading country of the EU.