Political and Economic Consequences of EU Enlargement Term Paper

Introduction

The European Union is a political and economic affiliation that embodies an exceptional form of collaboration among 27 member states currently. The main objective of the union is to develop a lasting relationship among member states to improve the economy and attain political stability for the member states.

In a political view, the union aims at avoiding and averting circumstances that may lead to war in the region, mostly generated by extremist groups. This is possible due to the fact that if there is a stable economic situation in the region, members would not vote for radical partners (Canbazoglu and Kaiser 8).

Archick asserts that the main reason behind the enlargement of the EU is to develop European partnership peacefully without any fears of war or resentment. According to the EU, the enlargement door is not closed to any European nation, inclusive of Turkey. In addition, the door is open to the nations of the western Balkans, which can fulfil the economic and political conditions required by the EU for attaining membership (1).

The prospects of the EU dictates that even if a radical autonomist party came to power, it would have to agree that they are reliant on on the EU and have a continuing integration process. In view of this, such a party would be obliged to share the vision and objectives of the united Europe.

This is entirely because the financial and economic constancy would be reliant on the interaction process, which presently affects Turkey. In Turkey for instance, the two major movers of the Turkish economy are the IMF and the EU. This implies that if the two are not there, the Turkish economy would not hold (Canbazoglu and Kaiser 8).

The unification of the EU and the consequent enlargement has been taken positively by most citizens of the prospective member states. One clear example of this is the case of Poland. A vote in Poland indicated that that 77% of its inhabitants were for the support of it’s the accession into the EU.

This support for the accession of Poland continued several years after after the enlargement of the EU (Więcławski 12). On the other hand, the EU enlargement instigated intense fears among the EU members from the western nations. The existing member states feared the enlargement process in many ways. These members feared the probability of unemployment and enormous immigration of employees from poorer nations of east and central Europe (13).

Background of EU enlargement

The Westphalia Agreement on October 24th 1648 was the hallmark of attempt by European nations to begin a long-term period of peace following over 30 years of war between the nations. Regrettably this effort did not lead to the anticipated peace because there lacked a higher authority to punish states that got into war or had disparities.

In addition, this agreement did not lead to a peaceful Europe because the nations of Europe interpreted their independence differently. As a result, most nations did not agree in many matters especially economic policies and political dimensions (Canbazoglu and Kaiser 4).

In the early 1950’s the EU set up its elementary decision-making structures. Among the structures included a council, consisting of state representatives from member states and an advanced civil service group (commission) responsible for development of EU policy and implementation.

Other decision making structures included a court for purposes of interpreting EU law and a Parliament to give the Union a degree of democratic legality. On most issues, there is a requirement of roughly 72 per cent of the votes in the council during decision making. This is a break away from the past where the voting for decision making required a unanimous vote. In this regard, the requisite of such a moderated majority with enlargement would block the passing of various important decisions (Sissenich 7).

The enlargement of the European Union has been occurring since 2004. In this year, the EU saw the accession of various countries including Lithuania, the Czech Republic, Slovenia, Estonia, Poland, Hungary, Latvia, Cyprus Slovakia and Malta. Later in 2007, there was accession of Bulgaria and Romania. In comparison with earlier enlargement stages, the two enlargements were the biggest in Europe in terms of the number of new nations as well as the population in these nations.

The two enlargement periods integrated nations with diverse social, economic and political structures. This makes the European Union the biggest integrated community globally. The reform policies of the new nations centred on improving the business cycles of the economy, macroeconomic balance, the development of labour markets and the measure and means of privatization. The main goal of these policies was to expand productivity growth, converging to a workable improved welfare level (Efstathiou 2)

There were speculations that the EU would have disappointed new accessed members because of two major reasons. First, most of the nations from Eastern Europe had great and unrealistic expectations from the union. Secondly, these new stations did not receive a warm welcome from the old members of the union.

The old members gave them a cold welcome, implicating non-acceptance. Long before the enlargement, there was a growing criticism of the EU. For instance, most of the nations in East and Central Europe felt that the Union had enforced its wide and complicated directory without granting them a voice or considering their special requirements.

In particular, they did not like the exceptional protection clauses that the EU wrote into the accession agreement, permitting other member-states to block their markets for East European goods under specific conditions. What angered these nations most was the fact that most of the west nations decided to block their labour markets to East European employees for almost seven years (Barysch 10)

The 2004 and 2007 European enlargement occurred with no much support and understanding of the public. These enlargements did not take into consideration public opinion. Most politicians in the European nations did not explain to the public the importance of the enlargement to their individual nations as well as the EU. Just a few politicians were able to explain to the public the reasons behind the enlargement process.

This implied that majority of the public in these nations were still in the dark as far as enlargement was concerned. The imprint left was that enlargement was an incentive for doing away with communism or an act of goodwill on the part of the EU. The implication of this was that enlargement from 15 to 27 member states was entirely a top-down procedure. Political elites deliberated on the expansion without actively involving the wider public (Leigh 2).

Various observers constantly detect signs of a criticism against the EU Even if there are no major signs of mounting anti-EU sentiment in Central and Eastern Europe. Now that Eastern European politicians do not have to fear consequences for their accession expectations, they are assured of becoming more critical of the EU’s policies.

The upcoming elections in Slovakia, Hungary and the Czech Republic will offer politicians the chance to exploit on extensive voter displeasure by accusing the EU for local problems.

In this regard, observers claim that the various political parties participating in elections of these nations might cause more Eurosceptic governments in all three countries. The major implication is that such governments, together with the populist marginal government in Poland, could transform the new members into stubborn EU partners (Barysch 11).

The older member states and their organizations encountered the challenge of the Eastern enlargement only on the day of new members’ accession (Wieclawski 13). This led to increasing sentiments particularly in the issues of joblessness and scramble for the scarce resources in these nations.

In Western Europe some citizens overlooked the eventual values of the Eastern enlargement. On the other hand, the Westerners were anxious in the probability of Eastern enlargement developing questions of decision-making, unevenness and management in economic capabilities. In addition, they aspired to increase the importance of a wider process of developing common understanding between the two halves of Europe disconnected for nearly 50 years by the “Iron Curtain (14).

Accession of new members

The Maastricht Treaty provided the opportunity for any European nation to apply for EU membership if it fulfils several essential political and economic standards, referred to as the Copenhagen Criteria. These standards required that the countries should have an active market economy, plus the capability to deal with competitive pressure and market forces within the Union.

Moreover, these nations must have the capability to fulfil the mandates of membership including faithfulness to the objectives of economic, financial and political union. The Copenhagen criteria also stipulated that the EU must be capable of absorbing new members, therefore the union may deliberate on when it is ready to receive a new member (Archick 5)

The Copenhagen criteria are outcomes of a precise political situation. This is because the establishment of these standards occurred in anticipation of the Central and Eastern European enlargement. Nevertheless, this reason set only a foundation of a more complex process of enlargement compounded by comprehensive circumstances and reasons (Aynho et al 22).

The Council Conclusions also stipulates additional standards in relation to specific nation’s enlargement and the interaction agreements of the EU and individual nations. This implies that the standards or requirements of accession into the EU occur both in the Copenhagen criteria and the council deliberations (23).

Falkner and Nentwich argues that according to past experiences, enlargement has never been easy politically. This largely applies to how the union undertakes negotiations for membership and the orientation required by the new member nations.

In the spirit of the EU, enlargement is considered as consolidation of a new member state and genuinely following the harmonized conditions and set standards of the member states. Despite this, it’s clear that the process of enlargement have been slow, painful and internally aggressive. This is true notwithstanding the fact that right from the initial Mediterranean enlargement, the new accessed states have continually had previous bilateral trade treaties with the Union (16).

The process of accession of a new nation into the EU is rather a complex procedure. The nation has to first apply to join the union. Once this application is received, there is a complicated technical process prompting a series of assessment procedures. However, despite such a complex process of evaluation, the accession of a nation into the EU is a more political process.

This is because in the decision making for accession of a nation, such a nation would not be accepted if all the members in the Union do not agree unanimously. One major implication of this is that if an applicant nation has conflicts or disputes with an existing member state, this may cause a derailment in the prospects of accession of such a nation (Archick 5).

One good example of such a scenario is the prospective accession of turkey in the EU. In this regard, a bilateral disagreement with an EU Member State has derailed Turkey’s accession negotiation. As a result, Turkey has responded by freezing frozen all contact with the Council of the EU in the reign of Cypriot as President. Another major reason that has subsequently stalled the prospects of turkey’s accession is its association and economic partnership with the Middle East and North Africa.

It has thus earned considerable economic growth and has become a more significant participant r in the Middle East and North Africa because of the unrests across the Arab World. These occurrences, together with continual distrusts in EU Member States concerning Turkey’s membership, seem to have narrowed the significance of the EU for Turkey (Kilcourse 7).

The process of EU enlargement left insignificant space for the flexibility, broadmindedness and voluntarism related to the plurilateral form of governance. The EU issued judgments and required total submission from the prospective EU member states. Moreover, the union issued paradigms and the applicant nations had to copy or emulate them.

In addition, the union provided teaching and training whereby the prospective member states were expected to socialize and learn. EU suggestions and resolutions were to be taken over by feature of their place of origin and not essentially by nature of their essence.

The compliance of the applicant nations was deliberate only in theory. In reality, these nations could not afford to refuse the EU’s requirements and anticipations (Zielonka 196). For instance the accession of Turkey has been subject to major concerns and criticism. Several observers state that the EU has been disrespecting the basic rights and sovereignty of Turkey (Kilcourse 20).

Positive consequences of EU enlargement

One of the major positive effects of enlargement for both old and new member states is development of continual economic growth. In the new states the restructuring of financial systems to a market economy will produce improved production and effectiveness. In addition, enlargement will permit the new member states to be able to benefit from the Single Market through improved trade.

Various projections assert that the total number of jobs in old member states might increase by approximately 300,000 jobs. Such an enormous increase in job creation would mean that these countries will accelerate their economic growth and their citizens will improve their standards of living (Canbazoglu and Kaiser 10).

Rato indicates that the widening of the European Union will probably stir increased economic integration among member states. Heightened competition and economies of scale in wider, more tightly united financial markets should reduce lending scales, drop intermediation costs, and apportion funds more competently. In addition, better broadening of portfolios and weightier cross-border connections should reduce risk burden thus enabling the region to become more robust to shocks (12).

For the accessed nations, the enlargement process can bring access to investment and an enhanced business setting, together with EU financial aid to reinforce changes. Moreover, new Member States can expect additional fiscal advantages through partaking in the single market and in EU funds meant to support development.

In view of these, it is clear that most or all of the European nations that seek to join the EU have prospects of economic and political gains. When such nations are applying for EU membership, they have a list of expectations that they sell to their citizens in order to gain public support (Aynho et al 71).

For financial and trade cooperation to suffice, there is need for improved economic and financial policies. In this regard, better economic and financial policies that new member states get help in financial integration of the EU. This is also achieved by the acceptance of the new states to have financial discipline and microeconomic stability stipulated in EU economic policies.

Together with robust sensible supervision, this should help survive the susceptibilities of capital-account instability and credit surges. This would also lay the foundation for the ultimate adoption of the euro (Rato 13). For old members, extension presents a chance to formulate public finances for imminent demographic challenges. A growth-friendly method to the problems of aging populations is essential, including steps to increase the retirement age and boost life-long training (16).

The macroeconomic specifics in the new EU member states are expressively stouter than those in the nations of the old EU-15 and particularly Germany. Considering the past ten years, the average growth rate of gross domestic product (GDP) in the new accessed nations was just under 4%.

However in the EU-15, the growth rate averaged just over 2% and only 1.3% in Germany. Macroeconomic forecasts for the new nations assume correspondingly high growth rates, such that also in the approaching years stouter macroeconomic specifics are to be expected in these nations (Untiedt et al 1).

The use of the Euro in an enlarged Europe will probably nurture even greater trade association by eradicating exchange-rate risk, reducing transaction costs and stimulating greater price transparency and competition. For instance, the current member states experience trade gains of approximately 10 per cent from the single currency (Rato 5). Enlargement will also widen the extent for lending activity substantially.

This is due to enamours bank credit to the private sector in the accessed nations of the west, which are below average (Leigh 11). Generally, enlargement has brought 100m buyers with increasing incomes into the EU, with substantial benefit to exporters, financiers and workers in the older member states. Most of the EU’s best-known products could not remain internationally competitive devoid of subcontracting a portion of their production to the new member states (10).

Since locked nations free their economies to global trade, the extent of foreign investments and trade affect their growth frequency. This is largely because more open nations grow quicker than locked ones. A powerful factor of economic growth is technology, pioneered to the host economies by means of the trade of goods and services and the capital movement (foreign direct investments). In this regard, enlargement would bring about technology required to boost the economy of member states of the EU (Efstathiou 7).

Within the European Union, there are four fundamental freedoms that member states of the EU enjoy. The European enlargement will cause the new states to also enjoy these basic freedoms related to economic growth.

These freedoms are the free movement of services, the free movement of goods, the free movement of capital as well as the free movement of labour within member states of the European Union. Though the free movement of services came into effect after the creation of the European single market, there are still several hindrances concerning the movement of services across the boundaries within the EU (Untiedt et al 4).

Another advantage of enlargement to new members is attracting investment in their economy. These accessed nations have a clear advantage over countries of the Middle East in relation to investment pooling and attraction. This is largely because these nations enjoy a more apparent, foreseeable business atmosphere, politically responsible government and closeness to large western markets.

Although the new member-states have lower income levels and average wages as compared to older EU members, they enjoy a much higher of the same compared to Asia or the former Soviet Union. For instance, while a Chinese worker earns $150 per month, Polish and Hungarian workers earn $600-700 on average. In addition, the car industry in Central Europe is continually growing and attracting new investors (Barysch 16).

EU enlargement has widened the chances to integrate and develop production along the supply chain globally by way of attracting direct investors and development of global interaction. This is helpful to the European Union in that the risks only concentrate in regions within the union which enjoy a bigger share of comprehensive manufacturing processes that are labour intensive. In addition, such risks go to regions which produce inferior products.

EU enlargement has also escalated the present competition in the market by developing various innovations into the European market. The new member states have come with numerous innovations in the union, which have increased the competitive advantage of the EU market. As a result, most regions in Germany that harbour an extensive research and innovations, as well as specialization in products that are in an early stage of the product life cycle enjoy far much clear benefits over other regions (Untiedt et al 11).

As Rato asserts, foreign direct investment (FDI) is the most straightforward network for integration in the European Union. He argues that in a nut shell, FDI between the old and new members could be as much as 70% less than vindicated by economic basics (10). The free movement of goods and capital, the tendency of accession into the European Union and the end of socialism in the newly integrated states made the nations appealing for Foreign Direct Investments.

These capital flows, were very important for them since they made them move from the transition economy to a capitalist one. There are various factors that made these nations appealing to investors. These are, the availability of a well-educated and competent labour force, comparatively cheap labour given its productivity and the fact that the region is in an ample location near the much more developed Western Europe (Efstathiou 9).

Another major positive consequence of enlargement is the development of policies to confront ingrained structural weaknesses and overturn flaccid income prospects. The Lisbon Strategy implemented in March 2000 established a determined development for the EU. The strategy advocated for a wider emphasis on research and development, forthright education and employment goals, completing of the internal market and elevation of active aging (Rato 17).

Another advantage of enlargement to the new accessed members is their inclusion in the larger EU system of redistribution. This system includes the common Agricultural Policy (CAP) and the structural and cohesion funds. The disbursement of the structural funds occurs at the regional level.

These funds are mainly directed into projects that target at developing the productive capability of regions. Such capabilities include upgrading of infrastructure and upgrading of small and medium enterprises (Orla and Jan 8) on the other hand, the CAP comprises procedures such as grants and income warranty schemes for farmers, which could attest to be immensely expensive if extended and cause a drain on the economies of old member states (Canbazoglu and Kaiser 11).

In EU history, this form of redistribution has regularly served as side payment to safeguard poorer nations’ support for procedures of market assimilation. However, after enlargement, there will be less money in circulation and there will also be more heightened competition for the scarce resources available. This is because most of the new member states’ wealth and economic growth is below the average set by the EU.

The EU cannot get involved in deficit spending unlike the case of national governments. Simultaneously, worldwide pressure is rising against EU (and U.S.) agricultural grants. Mounting political pressure insists a shift of redistribution away from farmers’ grants and toward development of the region. This is however happening even though an ingrained constituency has scrapped previous efforts of reforming EU agricultural policy (Sissenich 10).

The European Commission asserts that regions along the previous external EU border may particularly experience diverse enlargement effects due to their nearness to the new member states. This implies that such regions will benefit more from the integration of the new accessed states in terms of openness to trade, free movement of goods and services as well as economic integration.

These benefits will make the new member states to be competitive in the European market as well as the global market. Consequently, the European market will also be more competitive internationally. This will occur because there will be increased cross-border association with the new states in an enlarged EU market (Smallbone et al 4).

The accession of Poland and the Czech Republic may be advantageous to the German labour market. This has largely led to huge immigrations from various nations of Eastern and Central Europe to England and Ireland. Nevertheless, the development of the French labour market has not considerably augmented the number of employees from the accessed nations working there.

Moreover, many of such workers made a decision of returning to their native countries due to the recent monetary catastrophe. Generating an effective means of luring the immigrants to return is rather a hard task for the governments of the new accessed nations of the European Union (Więcławski 19).

Another major advantage of the EU enlargement to the new members is the participation in the EU single market. The single market permits free and uninhibited trade within the countries. In this regard, such a move will encourage investments in the new member nations as well as development of new opportunities for companies and individuals in these nations.

EU enlargement will also ease free movement of citizens of the new nations who will be able to travel, live and study in the old EU member countries. This will consequently increase integration between the nations and improve academic collaborations (Orla and Jan 6).

Since the formation of the European Union, the new member states would be the only nations to experience better policies and beneficial regulations within the EU. In this regard, the new member states will enjoy the development of fresh and well-thought economic, political and financial policies that old members did not enjoy during the formation of the European Union. However, projected harmful policy effects, for instance on the Common Agricultural Policy, have not occurred in the way that was feared (Aynho et al 107).

Rato asserts that, Europe also has much to profit from the continuing fiscal integration with the ultimate aim of a really pan-European financial market. This would come along with wider market access for both new and old member states, considerable market reforms, and concerted efforts at synchronization of various EU standards and regulations (9).

Schmognerova argues that there is need of a more detailed analysis of market oriented plans in public services in the new Member States. This will help in development of a better understanding of its effects and impacts on social unity. However, it is evident that the enlargement process has far wide impacts on reforms on labour relations lowered prices and the wider consumer satisfaction in the new member nations (22).

The EU enlargement also had political effects in the new and old members of the EU. For instance, it has transformed the political relations between member states. Before the accession, the EU considered most of the states in eastern and central Europe as part of its external relations.

However, after the accession of these nations into the European Union, the Union started dealing with them as part of their internal relations. This greatly increased the political relationships between the member states of the European Union. This meant that any issues relating to the new member states, the EU would consider these issues as internal issues affecting the whole of European Union (Smallbone et al 4).

Canbazoglu and Kaiser add that accession of membership in to the EU will lead to political stability in the new member states of the Eastern Europe. This will occur as the states transform their legal and state organizations in order to align themselves with the EU standards of new membership. Having such political stability is vital in producing investment from within the Europe as well as from outside Europe therefore gaining much economic development (10).

In addition to the benefits of political stability and political relations, enlargement can also have wide effects on the national political structure in both old and new member states. In this regard, the presidents of these nations will have new roles and duties to fulfil.

For instance, the presidents and heads of states and governments would have the role of representing their countries in the European Union. They will therefore have profound share in the making of decisions in the Union and charting the way forward for the Union. This in turn will have enormous impact on all domains of domestic politics and policies (Aynho et al 77).

The incorporation of Central and Eastern Europe in to the EU’s single market has generated a new European labour specialization, with profound profits to both sides. This process has been resulted to rapid economic growth in the new nations. These nations can generate the foundation for being into speed with West European income levels only by development of higher value-added industries.

In the early to mid-1990s, the East European nations shipped majorly labour-exhaustive goods for instance clothing, and capital-exhaustive ones like heavy metals and chemicals. From the EU they purchased machine goods to renovate their factories as well as consumer goods and cars. After accession and the development of Foreign Direct Investment, these nations started to develop more skill-intensive industries, which produced better goods that were competitive in the single market.

As a result of the benefits of enlargement, currently both the old and new member states of the EU sell to each other almost the same goods including vehicles, pharmaceuticals and various types of electronics. This mounting ‘intra-industry’ trade is proof that the new members are being incorporated into pan-European supply chains (Barysch 11).

Another benefit of enlargement to the new member states is the issue of migration of workers from areas with low employment rates to regions with a higher employment rates. This will ensure a double-edged benefit for both nations. This is because the nation with low unemployment rates is in need of workers while the nation with a high unemployment rates is in need of work places for their increasing unemployed workers.

In addition, the adoption of a single market would permit free movement of workers from new member states to older member states. This is however faced with challenges as some old member states have deliberately created restraints on the admission of labour into their nations for at least the first two years of enlargement (Canbazoglu and Kaiser 11).

More primarily, eastward enlargement has provided to the old EU what it required most to remain competitive in the era of globalisation, which is an enormous number of skilled, low-cost workers straight at their disposal. In view of this most firms in Western Europe have countered the ascent of China and India by transferring some labour or production processes that are skill-intensive to Hungary or Poland.

These have helped the companies from Western Europe to stay competitive globally therefore preserving and generating thousands of jobs in their home countries. Although the old EU members have benefited profoundly from immigration of highly-skilled workers from new member states, some of these old states still control who comes in their country. These nations have stringent measures and controls on the immigrants.

If these old EU members from Western Europe are to fully benefit from the availability of highly-skilled workers from the East, they have to lessen their controls, which will make their labour markets more flexible and accessible. It is evident therefore that Eastward enlargement may force old Europe to reform, a prospect which years of grief-stricken political debate have failed to realize (Barysch 4).

Following the collapse of the communist era, the process of enlargement aided the EU to reinforce the stability, security and democracy and inside Europe due to various reasons. First it is due to the heightened competitiveness in the market and readiness to confront the challenges of globalization as the biggest united economy. Generally, the EU enlargement will benefit both the old member states and the new accessed nations.

For the new members, the EU enlargement will improve the living standards of citizens of these nations and help in growing their economy. On the other hand, the old members will benefit from investment opportunities and provision of highly-skilled workers and cheap labour from new members. In addition, the new members will benefit more by doing away with the risk of exchange rates thus cumulating capital with reduced interest rates (Efstathiou 3).

Future enlargement will most probably have diverse effects on EU policies. Even though such future enlargement might help in various areas for instance single market procedures, it might pose a risk to other significant spheres such as energy and climate change. In this regard, it is evident that there are varied speculations regarding climate change prompting some member states to impose stringent measures for controlling it. This is however not in tangent with the desired policy outcomes of some other member states, a situation which may affect integration (Aynho et al 107)

EU enlargement has developed a strong and continual process of unity within the European Union which have increasingly impacted on production procedures and structures, the level of competition and prevailing social and economic conditions in Europe. Due to the elimination of trade restrictions, there have been mounting access to new markets.

This has consequently generated new chances for firms to extend their activities outside their boundaries. This implies that firms can now operate in a wider market and have access to highly-skilled workers. In addition, enlargement has given consumers a broader range and higher-quality products and services. Moreover, due to the elimination of import duties, quantitative restrictions and physical barriers enlargement has created conditions for increased competition (Smallbone et al 7).

Negative consequences of EU enlargement

Despite the many promising advantages of EU enlargement, there are still few negative consequences of the same both to old member states and new member states. Zielonka indicates that with reduced levels of merging across the EU it will be hard to generate an overlay between the different economic, administrative, legal as well as cultural boundaries. Successful governance will necessitate more decentralization, diversity and flexibility.

With time this will most likely lead to heightened disintegration between regional constituencies and the authorities in control of certain spheres of public life for instance competition, trade, health, education, welfare support, employment or migration. This is because various Individual units will generate different allegiances and institutional provisions. This will also possibly lead to an escalating growing multi-policy of several overlapping administrations (198).

There are enormous differences not only between Western Europe and Eastern Europe but also between nations in the Eastern Europe alone. In these nations there are great variations in unemployment rates as well as income levels. In this regard, enlargement would cause the EU to cope with significant differences between the income levels of the new member states for an extended period of time.

As a result, revision of new budget lines would be inevitable alleviate the disparities in income and employment among cities and regions in an enlarged EU (Breuer 62).

Canbazoglu and Kaiser indicate that these great disparities in economic growth and standards of living could greatly affect the old member states in two major ways. Firstly, old member states might want to contribute more as the demand for regional support increases, and secondly, old member states presently getting regional support for example Spain and Greece find their support lowered as money is directed to another place (11).

Another major disparity is that most of the new members are nations in evolution to market economies, a development which is not yet completely finished (Schmognerova 6). Sissenich adds that the share of agriculture’s in the economy, which is regularly used as a pointer of repressiveness, is nearly twice as high in the new member states as in the current EU (2).

One major negative consequence of enlargement is that it has made the centre of European administration further separated from local interests within the union. This is fairly because the space of the European Union is now much greater and partially because the new accessed nations have different organizational landscapes and political primacies than the old ones.

Notwithstanding the extraordinary progress realised in recent years, the accessed nations are still much inferior and poorer compared to the old ones and it may be difficult for them to close this gap in wealth in within three decades. This implies that these new nations may take an extended long period to be able to compete with the older states, which are more economically and politically stable (Zielonka 198).

Another disadvantage of enlargement is the growing fears that most of the new states may not meet the standards and principles set up by the Union.

In addition, meeting some of the set standards for instance environmental standards might prove to be very expensive for these nations since they are still grappling with economic growth. Moreover, if these countries are to standardize most of public services, they will have to increase the tax base, which will be disadvantageous to the citizens of these countries. This will occur due to the fact that increase in the tax base will considerably increase the cost for living for such citizens (Canbazoglu and Kaiser 11).

Enlargement fatigue in the old member states is yet another negative consequence of this EU process. This is a widespread fear among the old member states that further enlargement of the EU would bring about heightened unemployment problems and reduction in wages due to influx of immigrant workers from new member states.

In addition, there are fears that there may be problems in accessing basic services for instance social care and health. Consequently, this enlargement fatigue has led to the worsening of the enlargement discussions and decision making. This has occurred through various reactions for instance shifting periods for opening labour markets to new Member States, weakening of the EU Services Command, and intimidations to new EU Member States (Schmognerova 2).

A majority of EU voters do not like the process of EU Enlargement, many of whom relate it with increasing unlawful immigration, global crime and lack of jobs. EU politicians in support of the enlargement have therefore had to satisfy restive publics on the importance of accession of new member states (Moravcsik and Vachudova 52).

Many people in the old EU members feel that enlargement have brought about unfair competition for the single market in terms of employment opportunities and investments. They blame the accessed member-states of participating in ‘social dumping’ and destructive tax competition.

Most of them also fault the heightened rates of joblessness in their nations on an inflow of ‘Polish plumbers’, Hungarian nurses or Latvian builders. Future enlargements will be very difficult of such public sentiments and hostility will continue. There is therefore much work to be done by most EU politicians who have to explain to the public that enlargement is beneficial and not harmful. Failure to do this will heighten public sentiment towards enlargement (Barysch 1).

Another major concern is that the increase in the number of member’s states and their diverse opinions will generate breakdown in the EU’s decision making process. This implies that the enlargement process will make the decision making process difficult and complex owing to diverse views of many states.

The probability of breakdown in the decision making process increases with the number of members since the threat comes from the casual possibility of an individual rejection under accord, which escalates exponentially as the EU enlarges. The decision making process of the EU is probably the most important role accorded to member states and therefore a breakdown would mean reduction in EU activities (Moravcsik and Vachudova 54).

After accession into the European Union, the new members from East and Central Europe expected that they will be granted a full participation in the decision making process of all deliberations of the EU. These nations also expected that their arguments will be honoured and respected despite the fact that they had less economic potentials compared to their older counterparts. This was however not the case.

The new nations from East and Central Europe did not receive an equal opportunity in the decision making process of the Union. They were somehow treated as inferior due to their economic and political backgrounds. The circumstances were most challenging for Poland. Poland was actually the largest nation among the new member nations yet it was considered a medium-size state in the EU. In particular, Poland had difficulties with its ambitions to play a vigorous political role in the European Union (Więcławski 21).

The economic changes stipulated by the EU, for instance the retraction of the state from various spheres of the economy, do inflict a huge adjustment cost on financially and politically susceptible nations. The nations which applied for accession have had to render industry to competition from western firms, considerably reduce state grants to feeble sectors and privatize fairly quickly large firms, banks and state services (Moravcsik and Vachudova 47)

The addition of big nations such as Turkey or Ukraine might have considerable monetary consequences for the union’s budget as well as regional support programs. In addition, this would result in consequences for the operations of particular EU institutions.

Some crucial EU member nations might fear that an enlarging Union could eventually deteriorate their chance to set the nature and agenda in EU institutions and drive EU policies. In addition, there are many doubts concerning the capability of some prospective EU nations to implement EU set principles and standards particularly in areas like the rule of law, basic rights, and anti-corruption procedures (Archick 13).

Change in tax policy would also adversely affect the new member states. Being one of the standards set out in the reformist agenda of the EU it would have far-reaching economic consequences in the new member states. Upon their implementation, such tax reforms would create unhealthy tax competition and considerably reduce revenues in the new member states.

For example, reduced tax receipts have accordingly decreased social expenses and are some of the aspects explaining higher at-risk-of-poverty rates following social transfers in the Baltic States, Slovakia and south-east Europe (Schmognerova 18).

Future enlargements of the EU also render a main institutional challenge. For instance, the number of EU member states will nearly double shortly. In addition, the EU is nearing to adjust from a majorly Western European organization to a strictly pan-European organization, something that has never happened before. Moreover, different from past enlargements, the EU is not a merely, or very principally, economic entity any more, but rather an extremely united political actor (Falkner and Nentwich 15).

European Union is becoming progressively segregated, with the formation of “alliances of the willing” in various policy areas. These alliances should however remain open to involvement by all for realization of a more unified Europe. A multi-track EU will be well positioned to receive new members after meeting the required standards and conditions, than an EU founded on the fabrication that one size fits all.

Before the process of enlargement is fully implemented and new countries are accessed in to the European Union, there must be deliberate efforts to arouse an up-to-date public debate in the EU concerning enlargement. In addition, more efforts must be made to generate more credible prospects of EU membership in the hearts of prospective member nations. This will necessitate strong leadership and creativity from those participating in piloting this historic process (Leigh 17).

Conclusion

The EU enlargement has long been viewed as a positive step towards a more comprehensive European integration. The enlargement of European Union is a process which has both positive and negative consequences to old members as well as to new members. The enlargement accelerated financial growth in new members in terms of investment opportunities, development of a single market, trade integration as well as redistribution processes.

In addition to economic gains, the enlargement had political and social effects in the new and old member states. For instance, it led to political stability in many new states and changed the political structures of the new states. The old member states also benefited from the enlargement in terms of investment and availability of highly-skilled cheap labour from the new countries.

Despite these advantages, the EU enlargement also had some negative consequences to both the old and new member states. For instance, enlargement caused fears among citizens of old member states with regard to unemployment and reduction of wages as well as social dumping.

Moreover, the process of enlargement was not popular among many citizens of the new countries. It also posed institutional challenges and tax problems in the new nations. The EU enlargement was therefore a double-edged phenomenon with advantages and disadvantages in both the existing member states and the new member states.

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