ENTER PROJECT

1
Applications for Membership of the EU
Turkey - April 1987 Cyprus - July 1990 Malta -
July 1990 Hungary - March 1994 Poland - April
1994 Romania - June 1995 Slovakia - June
1995 Latvia - October 1995 Estonia - November
1995 Lithuania - December 1995 Bulgaria -
December 1995 Czech Rep. - January 1996 Slovenia
- June 1996 Croatia February 2003 Macedonia
Spring 2004
EPC EDUCATION AND TRAINING www.epctraining.be
2
Population from May 2004
450 million
400
300
272 million
200
126 million
100
0
EU
USA
Japan
EPC EDUCATION AND TRAINING www.epctraining.be
3
Increase in area
EPC EDUCATION AND TRAINING www.epctraining.be
4
Population change
EPC EDUCATION AND TRAINING www.epctraining.be
5
GDP change
EPC EDUCATION AND TRAINING www.epctraining.be
6
We have practiced membership for a decade already
Bilateral European Agreements between the EU and
applicants have created convergence with the EU
in economic, political and social areas. Has
covered a wide range of issues such as trade,
political dialogue, legal approximation and other
areas of cooperation, including industry,
environment, transport and customs.
EPC EDUCATION AND TRAINING www.epctraining.be
7
Important effects of Enlargement

• A more peaceful Europe
• A Europe of nearly half a billion inhabitants
• Addition of rapidly growing economies, boosting
  economic growth and job creation
• Better quality of life for citizens through the
  protection of the environment, and the fight
  against crime, drugs and immigration.
• Wider cultural diversity
• Stronger role for the EU in world affairs

EPC EDUCATION AND TRAINING www.epctraining.be
8
Any progress yet?

•  
• Stable democracies have emerged in a record
  period
• Economic reforms have proven successful, leading
  to high rates of economic growth
• EUs financial assistance and the prospect of EU
  membership have stimulated development
• Trade and investment has developed well

EPC EDUCATION AND TRAINING www.epctraining.be
9
GDP per Capita 2003 Index. EU-15 100. PPS
US 139 Japan 102
EPC EDUCATION AND TRAINING www.epctraining.be
10
GDP per Capita 2003 Index. EU-15 100. PPS
EPC EDUCATION AND TRAINING www.epctraining.be
EPC EDUCATION AND TRAINING www.epctraining.be
11
Growth Rate of GDP 2003 Percentage change on
previous year

US 2 Japan 0,3
EPC EDUCATION AND TRAINING www.epctraining.be
12
Annual Growth in GDP

EPC EDUCATION AND TRAINING www.epctraining.be
13
Total Unemployment Rate -2003
USA 6,0 Japan 5,3

EPC EDUCATION AND TRAINING www.epctraining.be
14
Employment by sector 2001
EPC EDUCATION AND TRAINING www.epctraining.be
15
Sector effects

• Risk sectors are characterised by high labour
  intensity. Accession countries have favourable
  wage/productivity ratio
• The labour force in the accession countries is
  well educated so some more skill-intensive
  sectors might come under pressure in the EU as
  well
• In the service sectors, advantages for the EU are
  mainly in the fields of business and financial
  services, whereas among the accession countries
  exports, tourism and transportation services are
  dominant

EPC EDUCATION AND TRAINING www.epctraining.be
16
Labour productivity GDP in PPS per person
employed relative to EU-15 100. 2003
US 120,7 Japan 89,4
EPC EDUCATION AND TRAINING www.epctraining.be
17
Earnings Average gross annual earnings in
industry and services, EUR, 2001
EPC EDUCATION AND TRAINING www.epctraining.be
18
Wage/Productivity
New Member States roughly delivers half the
productivity for a quarter of the price Threat
or opportunity?
EPC EDUCATION AND TRAINING www.epctraining.be
19
The knowledge economy Gross domestic expenditure
on RD of GDP - 2000

EPC EDUCATION AND TRAINING www.epctraining.be
20
The knowledge economy Internet penetration in
EU households - 2003

EPC EDUCATION AND TRAINING www.epctraining.be
21
The knowledge economy Internet penetration in
enterprises 2003

EPC EDUCATION AND TRAINING www.epctraining.be
22
The knowledge economy Patent applications to
European Patent Office Per 1 million inhabitants
- 2001
EPC EDUCATION AND TRAINING www.epctraining.be
23
Energy intensity of the economy- 2001
EPC EDUCATION AND TRAINING www.epctraining.be
24
Energy intensity of the economy- 2001
EPC EDUCATION AND TRAINING www.epctraining.be
25
Business effects Four drivers

• Strong boost to foreign direct investment due to
  higher confidence in a predictable political and
  regulatory framework.
• Raising training and skills standards, as well as
  productivity improvements, technology transfers,
  modernised plant and equipment, and better
  environment and social standards.
• Higher levels of international competitiveness in
  both the new and the old Member States.
• Increased cross-border trade between the new and
  the old Member States.

EPC EDUCATION AND TRAINING www.epctraining.be
26
Regional effects

• Countries with no borders with the new Member
  States will be affected less by the increase of
  competition from the accession countries
• The impact on countries with borders to the new
  members will be much higher They will benefit
  more from the demand in the accession countries
  but also fell increase in competition

EPC EDUCATION AND TRAINING www.epctraining.be
27
Impact on SMEs
In many sectors the impact will be restricted to
regions close to the new EU members. Micro and
small enterprises tend to serve local needs and
impact will be more moderate. Medium-sized
companies are often hampered in their
international activities by transaction costs,
which will be reduced because of
enlargement Medium sized companies will have new
partnership and market opportunities in the
enlarged market. Requires an effort!
EPC EDUCATION AND TRAINING www.epctraining.be
28
The business environmentLevel of cooruption
Transparency Internnational 2003
EPC EDUCATION AND TRAINING www.epctraining.be
29
Investment, enlargement and SMEs

• Enlargement will mean a reduction of transaction
  costs due to Internal Market.
• Therefore, enlargement could improve the position
  of SMEs in terms of trade and investment, but the
  question remains as to whether and which SMEs
  will invest.
• Partnership opportunities should be considered.
• Enlargement Threat or opportunity for SMEs?

EPC EDUCATION AND TRAINING www.epctraining.be