The Expansion of the EU

5 th expansion The Treaty of Accession, signed in Athens on 16 April 2003

10 Additional Countries 8 Central and Eastern European Countries 3 Baltic states, Poland, the Czech Republic, Slovakia, Hungary, Slovenia Malta and Cyprus, both members of the Commonwealth. They represent 75 million inhabitants, 15% of the EUs population before expansion (and 19% of its territory and 5% of its Gross Domestic Product (GDP).

The expanded EU has 25 members, 450 million inhabitants

France has supported the expansion from the very beginning, for political reasons

For NZ A challenge due to less familiar relations with the new members Risk of a EU more difficult to influence

ECONOMIC CONSEQUENCES

A slight increase in growth

But an increase in the disparities in living standards

In Frances view, no increase in EU taxes

The Euro New members will be able to adopt the euro but not immediately, nor at a predetermined date

Common Agricultural Policy (CAP) Total integration of the new members after 10 years. Maintenance of agricultural subsidies at the same level until 2013.

The EU is NZs second largest trading partner

SOCIAL CONSEQUENCES

Complete adherence to existing community regulations, including environmental norms

Reciprocal fears Massive land purchase Industrial relocation Movement of people (migration)

Except for Cyprus and Malta, joining the EU does not give immediate rights to reside in Schengen states.

However, this will be possible once the outer EU borders are deemed secure and adequately controlled

Extending EU borders to the East

For France, the cost of expansion will be 1 billion euros per year between 2004 and 2006, or 15 euros per year, per person

INSTITUTIONAL CONSEQUENCES

The expanded EU must be able to function For France, three objectives

1- More democratic The incorporation of the Charter of fundamental rights in the constitution The extension of the European Parliaments powers The election of the President of the Commission by Parliament, on the Councils proposal citizens right to initiate legislation

2- More effective New definition of qualified majority Quasi-generalisation of qualified majority Reinforcement of the Commission by reducing its composition and reinforcing the authority of the President of the Commission Stable Council presidency Creation of a Minister of Foreign Affairs, reliant on a European diplomatic service Increase in the EUs powers

3- Closer to citizens Simplification of controls and procedures Transparency of the Councils work Clearer division of powers

For NZ Interest in the decision simplification process

CONSEQUENCES ON THE PLACE OF THE EU IN THE WORLD

Development of an European Defence Policy Agreement between France/UK/Germany to develop an autonomous planning/steering capacity of operations EU military intervention in Macedonia and Ituri Creation of a weapons agency in 2004 compatible with the Atlantic Alliance

FUTURE BORDERS The Expansion continues...

Bulgaria and Romania Turkey: 70 million inhabitants. 99: is a candidate state destined to join the Union on the basis of the same criteria as applied for the other candidates. Croatia has applied For new members neighbours, to the East (Ukraine, Byelorussia, Moldavia, Russia) and to the South (South Mediterranean), redefinition of relationships

CONCLUSION Public opinion in France: poll at the end of 2002, only 27% against expansion (but only 12% completely in favour). EU 66% in favour, 22% against Victor Hugo, in 1849: A day will come when all of the continents nations, without losing their distinct qualities and their glorious individuality, will merge closely into one greater unity and form the European brotherhood.