It?s over a decade since the European Economic and Monetary Union (EMU) was introduced, but the financial and economic integration of Europe has failed to fully live up to expectations. This book is drawing up an assessment of Europe?s monetary union by looking at the behavior of investors on bond markets. The empirical study uses a unique collection of data on bond returns over a period of almost twenty years (1990-2008). Not all of the ex-ante predicted effects have become reality. One of the most striking results confirms the notion of a clear North-South divide within Europe. The differences between the participating countries in the core and the periphery have increased rather than decreased in terms of bond returns. This effect was already visible in March 2008, even before the sovereign debt crises began to emerge in the Eurozone. The study also finds that there has been no tendency towards industrial specialization. If anything, industries have dispersed over a wider area. Other predictions did hold true, such as the reduced importance of liquidity and maturity effects. This provides partial proof that the European bond market has expanded and deepened.