ABSTRACT
This chapter illustrates the hierarchical reorganization of the European economy from different perspectives. It describes the evolving structure of the network of trade among Germany, France, Southern periphery (SP), Eastern periphery (EP) and key international partners. It documents the rise of Germany's trade leadership since the introduction of the euro in 1999, the resizing of the SP and the increasing relevance of the EP. The chapter considers the structural relations, taking into account the international fragmentation of production and the different offshoring strategies. It focuses on the automotive sector in order to observe in more detail the creation of a central-European enlarged core and the competing peripheries' divide. The chapter analyses the evolving shapes of networks 1 and 2 for the years 1999, 2008 and 2014. This time span covers the European trade relations before and after the euro's introduction, and before and after the crisis.
