2. European Union Enlargement
In May 2004, West meets the East. The EU has enlarged several times since the "Common Market" was originally set up with just six member states in The current wave of enlargement will have very important social, economic and political implications for the continent of Europe over the coming years.
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3. EU Membership in January 2009
EU MEMBERSHIP JANUARY 2009
RICH
POOR
LARGE UK
SPAIN
FRANCE
POLAND
ITALY
GERMANY
SMALL
BELGIUM
PORTUGAL
LUXEMBOURG
GREECE
NETHERLANDS
ESTONIA
ROMANIA
IRELAND
HUNGARY
BULGARIA
DENMARK
CZECH REPUBLIC
SWEDEN
SLOVAKIA
AUSTRIA
SLOVENIA
FINLAND
CYPRUS
MALTA
LITHUANIA
LATVIA

4. The Map of an Enlarged Europe

5. Potential Gains for Accession Countries
Membership of the EU Single Market
Trade:
Exploiting comparative advantage to increase trade
Increase in export potential
Greater choice for consumers
EU is a larger trading bloc along similar size to USA
Investment
Free movement of capital – looking for the highest return
Inward investment to aid transformation of national infrastructure
Competition
More competition – a boost to labour productivity
Transfer of factors of production
It should be remembered that the degree of integration between accession and EU-15 countries has increased substantially over the last decade. In this sense, many of the static and dynamic effects of increased trade and competition between the 25 nations have already occurred. Trade integration between accession and EU-15 countries has been growing at double-digit rates for over ten years. To put things into some sort of perspective, the ten accession countries will add directly only 5-6% total EU GDP – the equivalent to adding to the EU a country of the size of the Netherlands!

6. Potential Gains for Accession Countries
Financial Support
Countries will be net recipients of income from
Common Agricultural Policy
EU Structural funds
Much of the EU funding will help to finance investment
Accession countries are not yet in a position to join the Euro although some countries have announced a Euro introduction target date. Cyprus would like to join in 2007, Estonia in 2006, Hungary on the 1st of January 2008 (along with Latvia) and Poland and Slovakia in or None of the remaining accession countries has specified a preferred date.

7. Negative impact of EU membership
Can less efficient economies compete??
Migration of labour may mean unemployment in some areas.
Loss of tariff control means countries cannot ‘protect’ own industries.