Economic crisis dims EU enlargement success[fr] 

"Enlargement has served as an anchor of stability and a driver of democracy and the rule of law in Europe," EU Enlargement Commissioner Olli Rehn said in a statement. 

In the report published last Friday, the Commission said enlargement had brought about huge economic and political benefits for both sides. "Economically, enlargement has led to increased living standards in the new member states, while creating export and investment opportunities for the old ones," the report said. 

The report said that income per capita in new member states rose from 40 percent of the old member states' average in 1999 to 52 percent in 2008, while economic growth averaged 5.5 percent per year in 2004-2008 compared to 3.5 percent in 1999-2003. 

Such progress did not come at the expense of the old countries, which averaged growth of around 2.2 percent annually in 2004-2008, with a similar figure for 1999-2003. 

Enlargement also increased trade opportunities. In 2007, almost 80% of exports from the new member states went to the rest of the EU. Old member states also saw their sales to the new members increase to around 7.5% of their total exports in 2007, from 4.75% a decade ago. 

Unemployment in the new member states declined to levels similar to those across the rest of the EU: around 7% in 2007. 

This year, the twelve newest EU members are due to receive seven billion euros in communal development aid, and the European Investment Bank says it will lend them a further 11.5 billion euros. 

Fears of protectionism 

But the economic downturn has triggered protectionist tendencies in the 27-nation bloc, threatening to undermine the EU's benefits for its members from the single market. 

Some of the poorer member states fear protectionism is on the rise in the older members of the Union, which can afford to spend billions of euros to protect their banks and industries. 

"We should not let the crisis overshadow this uncontested success. United, we can shape the solution to global issues such as climate change or a new international financial governance," Economic Affairs Commissioner Joaquin Almunia said, adding: "Divided we will achieve nothing." 

The EU will hold an emergency summit on 1 March, partly to discuss protectionism. 

(EurActiv with Reuters)

In parallel to the publication of the European Commission’s report, EUROCHAMBRES asked national chambers of commerce in newly acquired member states to evaluate how their inclusion in the EU impacted on their economic situation and performance. 

"Respondents believe that the main economic benefits of EU accession have been a higher degree of macroeconomic stability, easier access to larger markets (including capital markets) and very positive trade and investment flows, including foreign direct investment. They also note that services, manufacturing and construction are the sectors which benefited the most from EU accession," EUROCHAMBRES reports. 

Arnaldo Abruzzini, the organisation's secretary general, noted however that members perceive "persisting significant barriers in the internal market, especially of administrative and regulatory nature, coupled with problems related to workers' migration and lack of qualified workforce". 

Eurochambres also underlined the massive capital outflows from the CEE region. "The current crisis is putting at risk the substantial economic benefits gained from enlargement, especially for those countries which are not part of the Euro area," Abruzzini added. 

EU Enlargement Commissioner Olli Rehn stated that the global economic crisis must not jeopardise the EU's inclusion of Serbia and other West Balkan countries. Serbian workers must not pay for mistakes in Wall Street and elsewhere, he said. Rehn pointed that the EU must not allow for the crisis that occurred due to faults of the present financial capitalism to become an excuse for slowing or halting the EU enlargement process. 

In this context, he reminded that the EU's expansion to Eastern Europe was a key factor of economic competitiveness and strengthening political stability, democracy and rule of law throughout Europe. 

Speaking about the report, the Czech EU Presidency welcomed the postive data. Czech Deputy Prime Minister Alexandr Vondra said: "For applicant countries such as Croatia, Macedonia and Turkey, membership creates opportunities for them and advantages for us." 

"Member states pride themselves on their different cultures, yet we share common values and set high standards. So it is in our interest to see these values and standards grow beyond the EU's current borders, said Caroline Flint, UK’s minister of state for Europe," added Vondra on behalf of the EU presidency.

"We welcome the study [...] above all because its results are definitely good news, and these days good news is scarce. It is important to know, that, on the basis of hard facts, the road we took together five years ago was the right one. The European Union can be rightly proud of its achievements. The study shows clearly that the EU enlargement has brought prosperity to all countries without exception. Knowing this should enable us to look into the future with optimism," Vondra concluded.