Abstract
The political determinants of regional integration and separation have been analyzed in much theoretical, but little empirical work. From a local perspective, the Swedish 1994 EU-membership referendum can be described as the choice between two different unions - Sweden and the EU. In this particular case, membership implies less discretion to handle income shocks. Local industry diversity is shown to have been an important determinant of the voting pattern. Further, high-income regions were more prone to vote in favor of membership. A reasonable interpretation is that safe and rich regions voted in favor of secession from Sweden, rather than integration with Europe.