The object of this analysis is the examination of the influence of the economic cycles on the Eurozone’s cross-country economic inequality. The research is based on the hypothesis that the Eurozone’s cross-country inequality is quantitatively and qualitatively influenced by the cycles. Consequently, the main objective of this inquiry is to address the two related research questions. The first one examines the extent of cyclical fluctuations’ influence on the Eurozone’s inequalities, while the second one investigates the ways in which fluctuation effects have manifested. From the viewpoint of the first question, the aim is to determine the patterns of cyclical influence which would enable clustering of the Eurozone’s countries. From the standpoint of the second question, the matter is addressed from two aspects: the first, through which economic categories the cyclical influence on inequality can be observed, and the second, how inequality movements caused by cyclical variation were exhibited.

This research investigates the influence of economic cycles on the dynamics of cross-country economic inequality. The inquiry is based on the model formulated using the theory of unequal labour exchange which contemplates inequalities through the usage of disequilibrium prices, capital-labour ratios, efficiencies, disequilibrium wage and profit rates, and the labour force exploitation. Within the empirical section, the adoption of the aforementioned categories allowed for the clustering of the Eurozone countries according to the similarities in reported trends. The findings indicate that the countries did not tend to share economic cycles, proving that they are differentiable based on the on distinct utilization of advantages arising from the cyclical influence. As the outcome, asymmetrical distribution of benefits leads to divergence and results in the cross-country inequality. The implications of these findings are crucial for the existence of the European Union which must revise the “One Size Fits All” and “Single Speed Europe” policies in order to circumvent destructive tendencies dividing the European countries and opposing the goals of effective single market integration.