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TRANSFORMATION OF FOREIGN ECONOMIC RELATIONS OF THE CENTER AND THE PERIPHERY IN THE EUROPEAN UNION

In modern conditions, the external economic relations between countries of the vanguard and periphery are becoming increasingly controversial and ambiguous. Undoubtedly, the problem of inequality between the mentioned groups of countries has been always acute, and many schools of economics have been working on a solution of this question. This problem has escalated after the first wave of the global economic crisis (2008–2009). Despite everything, countries of the vanguard continue to promote principles of the neoliberal model through international organizations and financial institutions, which turned out to be unviable due to numerous reasons. The article deals with economic and trade relations between countries of the vanguard and periphery within the European Union, problems and controversies of their interaction and provides with a prediction of further development of the integration group. It may definitely be said that the liberalization of the external economic relations between partners has led to the increase of inequality among them, deepening of structural problems in countries of the periphery and to the stifling of their social and economic development. On that basis, the reasons of transformation of the European Union in context of the modern global instability have been outlined, as well as two groups of country outsiders in this association. The article shows that countries of the South and Central and Eastern Europe have found themselves in a financial bondage to the core countries and that their further membership in the EU will lead to even more harmful consequences and to a deep transformation of the whole EU.