European Union Enlargement

Course Contents

1. Poland
2. Hungary
3. Czech Republic
4. Slovak Republic
5. Slovenia
6. Estonia
7. Latvia
8. Lithuania
9. Cyprus
10. Malta
11. Bulgaria and Romania

Objectives:

• Understand the strategic impact of the EU enlargement
• Identify business opportunities in this countries

Available Languages:

Learning Unit Summary

The EU has grown in size with successive waves of accessions. Denmark, Ireland and the United Kingdom joined in 1973 followed by Greece in 1981, Spain and Portugal in 1986 and Austria, Finland and Sweden in 1995. Ten new countries are joining the European Union : Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia. A new era of opportunity begins for Europe. 450 million people in 25 countries can now build their future together, united in peace, freedom and democracy. Bulgaria and Romania expect to follow a few years later and Turkey is also a candidate country.

It is now the world's biggest single market, in population terms, though the North American Free Trade Agreement remains larger in terms of economic might. 

In Copenhagen on 13 December 2002, the European Council took one of the most momentous steps in the entire history of European unification. It decided to welcome 10 more countries to join the EU on 1 May 2004. In taking this decision, the European Union was not simply increasing its surface area and its population. It was putting an end to the split in our continent - the rift that, from 1945 onwards, separated the free world from the Communist world. So this fifth enlargement of the EU has a political and moral dimension.

Not only geographically but also in terms of their culture, their history and their aspirations, the countries concerned - Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia - are decidedly European. In joining the European Union they are joining the democratic European family and taking their full part in the great project conceived by the EU's founding fathers. 

 Their average GDP per head is 40% of the average level in the existing 15 EU member states. Some, however, are richer than others. Cyprus and Slovenia are at the top of the scale, with 70% or more of average EU wealth levels, while Latvia is closer to 35%. 

In the first three years, the EU has budgeted to spend 40 billion euros on the new member states, but these countries will pay 15 billion euros into the EU budget. So the net transfer of funds to the new members will be 25 billion euros. A figure calculated by a UK-based think tank put the cost of enlargement over six years (2000-2006) at 67 billion euros. By comparison, the cost of reunification to the German Government was 600 billion euros between 1990 and 1999.

The size of the single market should boost the EU economy and create jobs, while increasing the influence of the EU in the wider world. 

Source: EU