The real causes of the euro crisis (2010-2013) are still questioned. For the European authorities, it is mainly due to the imperfection of the national institutions of the affected countries. In response, the policies implemented in these countries were to correct these imperfections by reforming deeply their national institutions in a move towards a balanced budget and improved competitiveness.

Purpose of the article: This article aims to point out the responsibility of the Single Market rules in the intra-eurozone divergence process that lead to the debt crisis of the peripheral countries.

Methods: Long-term macroeconomic data and statistics show the economic trends from the year 2000 and since the financial crisis (2008-2009). A focus is made on the evolution of real interest rates between the core and the peripheral countries.

Findings & Value added: It is found that the Single Market has strengthened the agglomeration mechanisms (Krugman 1991), which has led to a European industrial polarization. Although this dynamic has been beneficial for the core European countries, it accelerated the deindustrialization of southern economies. Moreover, the policies pursued since 2010 in the countries affected by the euro crisis have failed to correct the economic imbalances. It then appears that only a profound reconsideration of the rules that organize the functioning of the European Single Market would be likely to stop the current divergence dynamics of European economies.