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European Union
Enlargement
tutor2u™
EU Membership in January 2009
EU MEMBERSHIP JANUARY 2009
LARGE
RICH
POOR
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
The Map of an Enlarged Europe
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
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
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.