The expansion of the European Union

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The expansion of the European Union

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Abstract

Over a period of time, the European Union had bifurcated into two groups. Trade between the East and West was minimal, and the accession of Eastern European countries was out of question. The sudden disappearance of the Iron Curtain created a need for exchange of goods and helped the transition from socialist economies to market economies. A logical integration of the countries of Central Europe and Eastern Europe (CEE) in the European Union was also achieved. The principle of enlarging the EU was approved for the first time at the EU summit in Copenhagen in June 1993. It was thus an inevitable outcome of the integration process; an experience in many ways unprecedented for Europe

Introduction
Transition into market economy
Establishment of the European Community (EC)
The model of expansion
The immigration of workers from the CEECs to the West
The entry of countries from Central and Eastern Europe into the EU
The problems posed by the expansion
The inclusion of new members in the EU
The expansion of EU to include new members
The overall balance sheet of socio-political integration
The inequalities in the living conditions in eastern society
The wages disbursed to workers
The impact of expansion on former members of the union
The unification of CEEC countries
Conclusion

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[...] The expansion has also exposed the Union of Fifteen to other risks. The immigration of workers from the CEECs to the West in search of higher salaries is one such risk. Low wages in these countries may lead to the relocation of some businesses. The migration of skilled workers from the east may cause unemployment in western countries. Also, competition in the agricultural sector will increase due to international specialization of the CEECs. All these elements contribute to the belief that the heterogeneity of the Union will grow strongly during the expansion, and the economic and social challenges ahead will be particularly important. [...]

[...] Full political integration was achieved and exemplified by the election of the former polish Prime Minister Jerzy Buzek to the presidency in July 2009 by the European parliament. In Spite of the process of catching up, the gap in living standards is still substantial both in the economic and the social sectors. Among the 10 new members of the EU, only Slovakia and Slovenia adopted the Euro. This indicates that not all countries are prepared for an economic union at present. [...]

[...] According to the European Commissioner for Enlargement Olli Rehn, "Enlargement has served as an anchor of stability and factor of democracy and rule of law in Europe." The reforms introduced by accession to the EU have strengthened individual freedom while ensuring peace and prosperity to nearly 500 million people. However, no situation is without its share of disadvantages. The main issue faced by these former soviet countries, is corruption. In recent times, there has been a drop in corruption levels, but is still a force to be reckoned with. [...]

[...] The expansion poses the problem of the take-over of the farming experience of the farmers of the CEEC's and the adaptation of the support systems of the industry. The EU accession of these countries has led to modernization and restructuring of the agriculture sector. The Share of agriculture in GDP has declined from in 1998, to in 2005. Income from agriculture rose by over 70% in 12004/2005, compared to the average income on 1999/2003. On one hand, the integration of EU and CEEC leads to greater agricultural trade between the CEEC's themselves and between EU15 and the CEEC's, and on the other it results in higher foreign direct investments in the agribusiness. [...]

[...] The impact of expansion on former members of the union: The EU is now the largest economy, with almost 500 million consumers. It constitutes of the global GDP. Expansion results in an increase in economic and political influence on the international stage. With a larger population EU has also gained larger borders, and has therefore become a stronger voice in global organizations In addition, former members of the EU that were coping with the challenges of an ageing population are now in a position to benefit from access to a younger workforce. [...]

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