The enlargement of EU by acceeding new countries

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The enlargement of EU by acceeding new countries.

International Economic Relations

Marta Fernandes :: Vítor Santos

University of Oradea Erasmus Students from Portugal

International Economic Relations University of Oradea

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TABLE OF CONTECTS

Introduction .................................................................................................................. 3

History of the European Union and its enlargement ................................................... 4

Founding countries: ............................................................................................... 4

1st Enlargement: ................................................................................................... 5

2nd Enlargement: ................................................................................................. 6

3rd Enlargement: .................................................................................................. 6

Fall of Berlin Wall ................................................................................................. 7

5th Enlargement: .................................................................................................. 8

6th Enlargement: .................................................................................................. 9

7th Enlargement: ................................................................................................ 10

Benefits ...................................................................................................................... 11

Impact of enlargement for Portugal .......................................................................... 12

Advantages ......................................................................................................... 12

Difficulties ........................................................................................................... 12

Action needed .................................................................................................... 12

Impact of enlargement for Romania and Bulgaria ..................................................... 13

Membership Criteria .................................................................................................. 14

Conclusion .................................................................................................................. 15

Bibliography ............................................................................................................... 16


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INTRODUCTION

This work was carried out for the course of

International Economic Relations taught by Mr.

Prof.Dr. Mihai Berinde at the University of Oradea.

At the end of WWII, Europe was completely

devastated. Western Europe, who until the second war

had taken the role as the main center of power and

decision of the world had lost him in favor of two

powers that emerged now, the U.S. and the USSR.

For the reconstruction of Western Europe was

essential to American economic aid, known as the

Marshall Plan. To administer the pool money

allocated by America, was created OEEC -

Organization for European Economic Cooperation.

The Treaty of Paris established the European Coal

and Steel Community (ECSC). The idea of putting

two basic benefits to the restoration of Western

Europe on a common management had as main aim to

liberalize trade in these two products among signatory

countries.

The merit of the ECSC is twofold: on the political,

encouraged the reconciliation and cooperation

Franco-German and opened the way for the European

community, in economic terms, contributed to the

recovery of Europe to liberate the production and

trade of raw materials essential to industry.


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HISTORY OF THE EUROPEAN UNION AND ITS

ENLARGEMENT In 1949, created the Council of Europe, by the nations of Eastern Europe, and this is

the first step towards cooperation that these six founders wished to deepen. Such

cooperation is a consequence of World War II and was intended to ensure that such

carnage and destruction will not happen again.

The May 9, 1950 (Europe Day), Robert Schuman presented a plan for further

cooperation. The April 18, 1951, and based on the plan presented by Robert Schuman,

six countries (Belgium, France, Italy, Luxembourg, the Netherlands) signed a treaty that

aimed to put their heavy industries of coal and steel under a common authority (ECSC).

From this date no member country can produce weapons of war to turn against each

other, as in the past.

FOUNDING COUNTRIES

Germany, Belgium, France, Italy, Luxemburg, Netherlands

EU-27 Member States (2007)

Having regard to the success of the treated coal and steel, the six countries have

continued their cooperation in extending this to other economic sectors, by signing the

Treaty of Rome (March 25, 1957), thus creating the European Economic Community

(EEC) or "common market", whose aim is the free movement of persons, goods and

services between Member States.


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In August 1961, the communist authorities in East Germany build a wall in Berlin to

keep the population flee to West in search of freedom. Some manage to escape, but

others are killed trying to flee.

The July 30, 1962, it launched the Common Agricultural Policy (CAP), which gives

Member States the common control of food production and agricultural prices are

uniform in the Community.

The EEC signed the July 20, 1963 his first major international agreement for

assistance to former African colonies, since leading the efforts of development

assistance to the poorest countries.

The July 1, 1968 there is the abolition of tariffs between the six member states, thus

creating conditions for free trade exists.

In 1970, in order to create monetary stability, the EEC decided to limit the margin of

fluctuation between their currencies, creating a single currency (the euro) would be

released years later.

The January 1, 1973, the six countries join three (Denmark, Ireland, United

Kingdom), thus giving the first enlargement.

1ST ENLARGEMENT:

Denmark, Ireland, UK

The fall of the Salazar regime in Portugal in 1974 and the death of General Franco in

Spain in 1975 put an end to the latest right-wing dictatorships in Europe. The two

countries are committed to the establishment of democratic governments, which is an

important step towards membership.


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The January 1, 1981, the number of community members is 10, with the accession of

Greece, who could join after the collapse of his military regime and the restoration of

democracy in 1974.

2ND ENLARGEMENT:

Greece

The January 1, 1986, Spain and Portugal join the EEC, which increases to 12 the

number of its members.

3RD ENLARGEMENT:

Spain, Portugal


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Despite the abolition of customs duties in 1968, there remain obstacles to free trade

within the Community. These are mainly from differences between national laws, the

Single European Act signed in 1986, provides for eliminating. The Single Act also

increases the influence of Parliament and strengthen the powers of the EEC on the

environment.

The fall of the Berlin Wall in 1989 symbolized the collapse of communism in

Central and Eastern Europe, which began in Poland and Hungary. It is the reunification

of Germany after more than 40 years of separation and eastern part of the EEC in

October 1990.

FALL OF BERLIN WALL

4TH EXTENSION

The February 7, 1992 is signed the Treaty on European Union at Maastricht. The

EEC exceeds a major step by establishing clear rules for the future single currency,

foreign policy and security and cooperation in justice and home affairs. The "European

Community" is formally replaced by "European Union".

JANUARY 1, 1993

Creating a single market and its four freedoms becomes a reality from January 1,

1993, where they move freely to the goods, services, people and capital.


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Austria, Finland and Sweden join the EU on 1 January 1995. The 15 Member States

now cover almost all of Western Europe.

5TH ENLARGEMENT:

Austria, Finland, Sweden

The Schengen Agreement came into force on 26 March 1995, seven Member States:

Belgium, France, Luxembourg, the Netherlands and Portugal. Travelers of all

nationalities, can travel to these countries without identity checks at borders. Other

countries later joined the Schengen area.

The signing of the Treaty of Amsterdam (June 17, 1997) is based on achievement of

the Maastricht Treaty. Includes provisions to reform the European institutions to give

more weight to Europe in the world and devote more resources to employment and the

rights of citizens.

EU leaders agree to start accession negotiations with 10 countries of Central and

Eastern Europe: Bulgaria, Slovakia, Slovenia, Estonia, Hungary, Latvia, Lithuania,

Poland, Czech Republic and Romania. Addition to these countries, the Mediterranean

islands of Cyprus and Malta. In 2000, the Treaty of Nice opened the way for

enlargement, to overhaul the EU rules on voting.

The January 1, 1999, eleven countries (that Greece would join in 2001) adopting the

euro only for their commercial and financial transactions. The coins and banknotes will

be introduced later. The eurozone countries are: Austria, Belgium, Finland, France,

Greece, Ireland, Italy, Luxembourg, the Netherlands and Portugal.


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The introduction of euro notes and coins takes place at 1 January 2002, whose

printing, minting and distribution involved a major logistical operation. More than 80

billion coins and banknotes are put into circulation. The notes are the same in all

countries, but coins have one common face with an indication of value, and a face with

a national symbol.

May 1, 2004, eight countries in Central and Eastern Europe (Estonia, Slovakia,

Slovenia, Hungary, Latvia, Lithuania, Poland and Slovenia) join the EU, as well as

Cyprus and Malta.

6TH ENLARGEMENT:

Cyprus, Slovakia, Slovenia, Estonia, Hungary,

Latvia, Lithuania, Malta, Poland, Czech

Republic

The 25 Member States sign a treaty on 29 October 2004 establishing a Constitution

for Europe in order to simplify the decision process and functioning of a democratic

Europe with 25 members and more. The Treaty, which includes a new post of European

Minister of Foreign Affairs, will only enter into force if ratified by all 25 Member

States.

Enter into force in February 2005, the Kyoto Protocol, an international treaty to limit

global warming and reduce emissions of greenhouse gases.

The January 1, 2007, two more Eastern European countries, Bulgaria and Romania

join the EU, bringing the number of Member States to 27


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7TH ENLARGEMENT:

Bulgaria and Romania

The 27 EU Member States signed the Treaty of Lisbon on 13 December 2007,

amending previous treaties. Its aim is to increase the democracy, effectiveness and

transparency of the EU and thus make it capable of facing global challenges such as

climate change, security and sustainable development. Before its entry into force, the

Treaty of Lisbon should be ratified by each of the 27 Member States.

Candidate: Former Yugoslav Republic of Macedonia, Croatia, Turkey

Potential countries: Albania, Bosnia and Herzegovina, Kosovo, under United Nations auspices

in accordance with Resolution 1244 the Security Council, Montenegro, Serbia, Iceland


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A policy of gradual and carefully managed enlargement is of fundamental interest to

the EU. Future enlargements will concern the countries of Southeast Europe. These

countries are at different stages on their road towards the EU.

Croatia and Turkey are candidate countries which have started accession negotiations

on 3 October 2005. In December 2005 the European Council granted the former

Yugoslav Republic of Macedonia the candidate status, the accession negotiations have

not started.

All other Western Balkan countries are potential candidate countries: Albania,

Bosnia and Herzegovina, Serbia and Montenegro including Kosovo under Resolution

1244 Security Council of the United Nations. The EU has repeatedly reaffirmed at the

highest level its commitment for eventual EU accession of Western Balkan countries,

provided they meet the membership criteria.

Iceland submitted a request in the July 23, 2009.

BENEFITS

The benefits of EU enlargement have political, economic and cultural contexts;

The enlargement of the zone of peace, prosperity and stability in Europe will

provide better security to the population.

The increase for the European market of over 100 million people in fast growing

economies, boost economic growth and employment and the current Member

States or candidate countries.

Is there a better quality of life for the citizens of Europe, as candidate countries

to adopt European standards of environmental protection and the fight against

crime, drugs and illegal immigration.

The new member states will enrich the EU for increased cultural diversity,

exchange of ideas and improve knowledge and understanding between peoples.

The enlargement will strengthen the EU position in world affairs, as regards

foreign policy, security, trade etc..

Source: Iapmei


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IMPACT OF ENLARGEMENT FOR PORTUGAL

ADVANTAGES

New opportunities for business and for economic and financial groups;

Export and investment opportunities in new markets;

The fact that these countries were emerging economies will enhance the

attractive conditions for Portuguese investment in these countries;

Free movement of workers - flows;

Prospects for a major increase in trade in products and services.

Low wages are our main competitive factor with the disadvantage that in

Portugal the manpower is not as high educational qualifications;

Allowed the strengthening of democracy and political stability and society in

general.

DIFFICULTIES

Migratory movements;

Increased competition in the economy domestic and foreign markets,

including competition with labor-national work;

Relocation of enterprises and investment (including foreign direct

investment);

Loss of power and political influence in the European Union;

Worsening of the position;

Increase in commercial competition;

Divert investment flows;

Reduction in the intensity of Community grants;

Potential effects on competitiveness and competition between companies;

Fears about a transfer of existing EU financial aid to other countries and

regions;

Movement of foreign direct investment and multinational enterprises.

ACTION NEEDED

Entrepreneurs with initiative and support the internationalization

Taking all the benefits of the enlargement of the market

Maintaining the connection with a major investment in the candidate countries,

notably in infrastructure (environment and transport as priority areas) and

technical assistance;

Enjoy the whole experience that Portugal is in services (banking, insurance) are

important for these countries

Modernize and improve the competitiveness of productive sectors, increasing

the export capacity.

Source: IAPMEI


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IMPACT OF ENLARGEMENT FOR ROMANIA AND BULGARIA

The European Union gives welcome to new members, Bulgaria and Romania, which

will become official members of the European Union on January 1, 2007. The accession

of these two countries is another phase of the enlargement process initiated in the year

1990, when twelve countries, mainly from Central and Eastern Europe, have applied for

EU membership.

Since its founding over 50 years, the EU has exerted a strong power of attraction,

having been enlarged constantly seeking new members. The accession of ten new

Member States in May 2004 was the biggest ever enlargement of the European Union.

The inclusion of Bulgaria and Romania will supplement the integration process,

rewarding the efforts of the European Union to promote peace, democracy and

prosperity across Europe.

As with previous enlargements, to meet all the criteria required for accession,

Bulgaria and Romania had to perform a process of significant reform and

modernization. In congratulating the people and the leaders of both countries for their

historic achievement, the European Commission President Jose Manuel Barroso

announced that measures will be taken of special monitoring following the accession of

Bulgaria and Romania. These measures will exert some supervision in certain areas it

was found that some efforts are still needed. Measures will be taken to control,

particularly in the areas of judiciary reform, fight against corruption and organized

crime, expenditure on agriculture and food safety.

In response to questions and concerns of European citizens posed by present and

future enlargements, the Commission adopted on 8 November 2006, a strategy for the

policy of EU enlargement. The studies of effective impact of benchmarking activities

and other concrete measures allow the EU to better assess the impact of adhesions. The

Commission also recognized the need to listen more carefully to citizens and to assist

Member States with regard to communication and dialogue with civil society.


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MEMBERSHIP CRITERIA

Any European country which respects the principles of liberty, democracy, respect

for human rights and fundamental freedoms and the rule of law of the European Union

can apply to join the European Union. The Treaty on European Union concerning their

conditions (Article 6, Article 49).

The application for EU membership is the beginning of a long and rigorous process.

The official starting point is the request by a country, usually as a result of strong

bilateral relations between that country and the European Union. A valid application

triggers a sequence of evaluation procedures by the European Union which may

ultimately result in the presentation of an invitation to the country to become a member.

The pace with which each country moves depends solely on its own progress in

achieving common objectives.

The country presented its application for accession to the Council. The European

Commission gives its formal opinion on the candidate and the Council decides whether

to accept the application. After the unanimous adoption of a negotiating mandate by the

Council, may be given official start to the negotiations between the candidate and all

Member States. But this is not an automatic step. Before the start of negotiations, the

candidate must meet a set of criteria.

So-called 'Copenhagen criteria', established in December 1993 by the European

Council in Copenhagen, require that the country has:

stable institutions guaranteeing democracy, the rule of law and respect for

human rights and respect for minority rights and protection thereof;

a fully functioning market economy and capacity to cope with competitive

pressure and market forces within the Union;

ability to assume the obligations of the status of a Member State of the European

Union, including adherence to the aims of political, economic and monetary

union.

In 1995 the Madrid European Council still needed that the candidate should be in a

situation that allows it to enforce regulations and procedures of the European Union.

Membership also requires the prior creation by the candidate with the conditions for its

integration through the adjustment of their administrative structures. Although the

transposition of EU law into national law is important, its effective implementation

through appropriate administrative and judicial structures is even more important. This

is a prerequisite for establishing a climate of mutual trust essential to the process of EU

accession.

Furthermore, the European Union must integrate its new members, needing to ensure

that its institutions and decision processes continue to function effectively and

responsibly; to be in a position, as it grows, continue to develop and implementing

common policies in all areas, and can continue to finance its policies in a sustainable

manner.


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CONCLUSION

Since its establishment under the Treaty of

Rome (1957), the EU enlargement is certainly the

greatest challenges facing Europe, as it benefits the

political, economic and social concerns represent

this process and some costs.

Indeed, Portugal is likely to be countries that

will see more negative impacts of enlargement. It

is however important to take into account the

benefits which result. For this, you must be aware

of stress and adaptation needed in order to have an

early response by the national stakeholders in order

to carry out the changes necessary to adapt the

country.


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BIBLIOGRAPHY

http://www.dre.pt/ue/ue_desc.html

http://europa.eu/abc/history/animated_map/index_pt.htm

http://ec.europa.eu/enlargement/countries/index_pt.htm

http://www.iapmei.pt/iapmei-art-03.php?id=1000

http://ec.europa.eu/agenda2000/overview/pt/agenda.htm

www.ugt.pt/ue/estudo2.doc

The enlargement of EU by acceeding new countries

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