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We analyze convergence in industrial systems in the European Union, and we relate it to synchronization in the dynamics of industrial cycles. We first study several indicators of industrial performance in seven European economies. Furthermore, by employing recent statistical methodologies, we investigate how much countries within the Union have converged/diverged in terms of industrial specialization patterns and phases of the business cycle. Our results show that countries have diverged significantly, especially after the Great Recession. Northern countries have displayed much better industrial performance than Southern ones. A North-South divide also emerges with respect to similarity in productive specialization patterns and business cycle dynamics. These asymmetries represent major challenges for future industrial and macroeconomic policies within the European Union. JEL Codes: F02, F44, F45, E32