Nowadays, forecasting regional growth is not possible without taking into account the recent economic dynamics at national and supranational level. In fact, the particular focus of the European Union on sovereign debts and deficits imposed by the economic slowdown, the macroeconomic trends that emerged as a result of the crisis and, last but not least, new politically sensible decisions concerning the future of the European Union play a role in explaining the remarkable industrial and geographic heterogeneity in the response to the crisis and the persistence of some of the contraction-induced effects in some countries and regions. All this introduces complexity in the way regional economic growth can be modelled for forecasting purposes. T...