Five years after enlargement: EU bigger, stronger, more dynamic and culturally richer

Author: Vladimira Briestenska
23 February 2009 - Issue : 822

The recent enlargements of the European Union were a milestone in the process of unifying Europe and have brought benefits to citizens throughout the Union. What are the direct consequences? On one side there are economic benefits as increased living standards in the new Member States, while creating export and investment opportunities for the old ones. On the other hand enlargement has also helped consolidate democracy, stability and security on the European continent. Despite this, there are also challenges, like the resistance of any temptation of protectionist tendencies that could destroy benefits for citizens by creation of a border free single market.

It has been five years since the EU took in 10 new Members from Central and Eastern Europe, putting an end to several decades of division brought about by the Cold War. Two more, Bulgaria and Romania, joined in 2007.

“The 2004 and 2007 enlargements were a huge historic step. They put an end to the division of Europe, helped consolidate democracy and brought economic benefits for all EU countries in terms of higher competitiveness, higher economic growth and higher job creation. We should not let the crisis overshadow this uncontested success. United, we can shape the solution to global issues such as climate change or new international financial governance. Divided we will achieve nothing," stated Economic and Monetary Affairs Commissioner Joaquin Almunia.

Nowadays the enlarged EU plays the role of a decisive actor in a globalised world representing the largest integrated economic area accounting for more than 30 percent of the world GDP and more than 17 percent of world trade. New Member States benefit also from the increase of their income per capita, which has risen from 40 percent of the EU-15 average in 1999 to 52 percent in 2008.

"Enlargement has served as an anchor of stability, and driver of democracy and the rule of law in Europe. Economically it has benefitted both new and old member states, as well as the EU as a whole. It has extended the area of peace and prosperity to almost 500 million people and increased our weight in the world," added Olli Rehn, Enlargement Commissioner.

Recent enlargement has also increased trade opportunities, while unemployment in new Member States has declined from often very high levels to levels similar to those in the rest of the EU – to seven percent in 2007. Moreover, the threat of the massive labour migration from the new member states has not materialized. In most host member states the number of migrant workers has not exceeded one percent of the ‘home’ working age population.

The enlarged EU can also better address the global financial downturn and other challenges than if its Member States were to act alone. The EU has taken coordinated action to stabilise the banking system and to help the economic recovery. New Member States currently experiencing a sharp growth slowdown are supported by the significant funds available under the EU's Cohesion Policy. The Balance of Payments facility allows the EU to come to the rescue of Member States outside the euro area that need temporary assistance.