Portugal Perspective in European Union - Essay Example

? Unit Introduction Portugal’s perspective on European Union expanding and allowing in more member countriessuch as Turkey and Iceland has created a big debate among member states. According to Claude (2004), European Union admits any country that has fulfilled political, economic, and democratic criteria for membership. It has gone ahead and increased its number from six to 27 members. Each treaty admits new members but requires the approval of other member states. The Union also assesses its capacity to absorb new members, as well as the capability of its institutions to work properly. As a result of this kind of enlargement, democracy has been improved and Europe has become more secure. Portugal agrees with European Union enlargement, which has allowed other member countries like Iceland and Turkey to join. Kaiser & Elver (2006) add that when the Union met in Copenhagen, it invited 10 member countries to join the European Union. Portugal thinks that the Union was not only increasing its population and geographical size, but putting an end to the split in the continent which had separated the free world from the communist bloc. Additionally, it emphasizes that the EU enlargement has moral and political dimensions. This process enabled countries like Turkey, Hungary, Iceland, and Poland, which are European countries not only geographically but in their aspirations, culture and history, to join the European Union. As a result, the countries are now partners of EU project. Turkey is NATO member having a long-standing association with the European Union. It has been applying for membership since 1987, but its history, political situation and geographical location made the Union hesitate for a longtime before accepting the application. It was until recently that it negotiated with Turkey and at the same time entered into an agreement with another country. Morelli (2011) emphasizes that there are legal requirements that exists for any European country to become a member. The European integration means to make the candidate’s economic and political process open to other European countries, as well as readiness to sign their treaties. Normally, for countries to qualify as members of the Union, they must have a stable institution that guarantees rule of law, democracy, respect for minorities and human rights. Additionally, European enlargement will have a functioning capacity and economy with market forces and competitive pressure in the Union, as well as the ability to take on membership obligation and aims of the Union. The countries undergoing negotiations normally receive European Aid, which makes it easier for those countries to catch up with others economically. Sajdik & Schwarzinger (2008) contend that the enlargement of the Union cost a package of 4 billion for funding newcomer’s projects in order to help them fulfill their obligations. Portuguese, therefore, think that when European Union expands its territories, the member states will ensure that the Union is enlarged and as a result it will work democratically and efficiently. This process makes it clear that Europeans have a number of concerns on its identity, as well as the entire EU. Therefore, there are no possible answers as for Turkey, Iceland and other countries’ disputable entry into EU. This is because each country views its economic and geopolitical interests differently. Their entry also raises status question of such countries like Armenia and Georgia. They have fulfilled the European request, but still they are not members of EU since their public opinion is against joining (Claude, 2004). Advantages of the enlargement for Portugal and European economy As for Portugal experience and perspectives, some advantages of the enlargement for Portugal economy and European economy that appear to be relevant are the following: to start with, the economy of Portugal benefited when it joined EU; as a result, it has promoted structural changes and macroeconomic stability in the country. It is also a decisive factor for high standards of living and economic growth in Portugal, and in Europe as well. Sustar (2011) emphasizes that the accession of new countries to the Union has been the largest enlargement ever in the history of Europe. European geographical territory, as well as its population, also expanded by 23%. To add to this, EU enlargement is in the first league of the world’s biggest markets, which accounts for a fourth of global income and world trade. The enlargement will also have positive repercussions in the growth of European economy. Its enlargement creates a win-win situation with growth in welfare and economic systems of both old and new member states. It will also help in fostering financial and economic integration. Additionally, it will help increase structural reforms and competition, which will lead to the growth of economic potential and high productivity. Trade integration has also increased in the past decades as supported by removal of quantitative and tariffs restrictions for industrial actions (Sajdik & Schwarzinger, 2008). As a result of the enlargement, new member states are attracted to potential markets because of the large population and its continuing catching up on living standards. Claude (2004) asserts that new member states share an average of 66% of total exports, while old members account for approximately 60% of total imports. The respective shares of exports and imports were below 50% ten years ago; therefore, the enlargement of EU has increased shares of exports and imports. Financial integration has also intensified between new member states and old member states due to accession. All new member states have recorded an increase in capital flows in recent years that reflects their capital stock. Moreover, it has anchored economic policies design in EU member states, which has helped frontload a number of significant reform measures. It has, therefore, served as a catalyst for institutional and structural changes in new EU states. The orientation of monetary policies in relation to stability of prices and willingness to grant Central Bank’s independence are a good example of institutional and structural changes (Claude, 2004). The enlargement has also led to high competition in EU and has enhanced economies of scale. Claude (2004) argues that previous member states will be affected by high competition in the EU which could speed up structural reforms in previous member states and, as a result, improve the potential outlook growth in EU as a whole. The new member states are more be competitive than old members and have already made progress in implementing structural reforms in some countries. Economical strengths of Portugal Some of Portugal economical strengths that would make other member states to be compelled to accept Portugal opinion are, firstly, its potential to export commercial opportunities in order to enlarge its internal market. Kaiser and Elver (2006) explain that Portugal have a classic trade creation that helps increase the size of their customs. It also has a fast growing potential rate where its economic potential is greater than in most countries. The potential of exports in terms of goods industries is also huge and recently FDI has concentrated on banks, hotels and retail. To add to this, the country has a large gain in its returns of scale and product efficiency, which exploits a large efficient scale in many countries and makes other member countries to accept Portugal opinion. It also has huge foreign incomes and investments, as well as profits. This is because the accession of other countries has provided a net flow of dividends and profits, which have boosted the country’s GNP, as well as supported its balance of payment. Such flows are likely to increase the country’s spending (Kaiser & Elver, 2006). In terms of free trade, Portugal has a potential of cost savings, because it imports raw material and other components from the Agreement countries. This helps in improving terms of trade for developed countries. Additionally, it has links from EU and British businesses to import low skilled labor in areas with severe labor shortages (Morelli, 2011). It is also successful in integrating appellant countries that has helped reduce the rush of economic migrants who seek employment in the country. There are also more job opportunities in the country and across member states, as well as a major significant economic growth in both urban and rural areas. Its environs are also clean in order to meet the EU standards; no border pollution is observed (Sustar, 2011). The above economic strengths of Portugal help in convincing member states assent to its opinion that EU enlargement will have positive repercussions in the growth of European economy. Its enlargement creates a win-win situation with growth in welfare and economic for both old and new member states. References Claude, J. (2004). Europe’s frontiers: EU enlargement - its implications and consequences, organized by the Calouste Gulbenkian Foundation. Retrieved from: http://www.ecb.int/press/key/date/2004/html/sp041027.en.html Morelli, V. (2011), European Union Enlargement: A status Report on Turkey’s Accession Negotiations. New York: Diane Publishing. Kaiser,W., & Elver, T.J. (2006). European Union enlargement: A comparative history: London: Routledge. Sajdik, M., & Schwarzinger. (2008). European Union enlargement: background, development, facts. New Brusnswick: N.J: Y: Transactions Publishers. Sustar, L. (2011). A new age of austerity and resistance. ( ISR Issue 75, January–February 2011) Retrieved from: http://www.isreview.org/issues/75/rep-austerity.shtml Read More