The diverging economic trajectories of European Union countries, laid bare and amplified by the Eurozone Crisis are the subject of debates within Comparative Political Economy and Post- Keynesian Economics, often centring on the role of price and non-price competitiveness. This paper aims to contribute to these debates by examining the dynamics of fourteen Eastern and Western European countries between 1990 and 2019, analysing the convergence of the former towards the latter and divergence within the two groups. In so doing, it draws on Thirlwall’s (1979) model of Balance of Payments-Constrained Growth, Post-Keynesian theories of export-led growth and the literature on competitiveness within the EU. It argues that patterns of trade and income growth lend support to the thesis that European Economies were Balance of Payment-constrained and that their export performance therefore conditioned their growth trajectories. It also finds Eastern Europe’s convergence to have been driven by price competitiveness, while divergence within the East and the West was at least in part due to non-price competitiveness. On the theoretical and methodological side, it claims existing measures of competitiveness, both price and non-price, are severely flawed because the Real Effective Exchange Rates that are used as price variables fail to appropriately account for price competitiveness.