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EU Economy : Issues and policies - Essay Example

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This policy paper is for the attention of the European Union Economic and Monetary Affairs Commissioner, and is designed to explore whether the European Union should support further expansion of the European Union from the economic point of view.
This study advises the European Union (EU) Economic and Monetary Affairs Commissioner to support further expansion of the European Union on economic grounds…
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EU Economy : Issues and policies
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"EU Economy : Issues and policies"

Download file to see previous pages After the collapse of the Soviet Union, Eastward extension of Europe offers Europeans their best chance in 500 years to unite in peace. It is now possible to achieve the dream of living and working anywhere in Europe using one currency under one rule.
The EU was enlarged five times with the largest enlargement on May 1, 2004 to include ten new states. The accession mainly had a strategic dimension towards reunification of Europe. In order to join the European Union, a state must fulfill specific economic, fiscal and political conditions. Each member state must agree to accession of any enlargement.
Economic gains from the expansion of the EU were surrounded by concerns from economic situation in new member states. Marginal economic gains were expected for old member states with newer states expected to have large economic growth to catch up with older states.
The European commission gives advice to EU. The European commission includes the European Commissioner for economics and finance whose job is to maintain a strong European economy over the coming years. Her recent efforts range from removing trade barriers to public awareness of the benefits of single European market. The single market offers EU citizens to live, work, study and do business anywhere in the EU while enjoying a wide choice of competitively priced goods and services. The following sections present the arguments for and against the advice provided in this report.

3. Arguments for European Union Expansion:
3.1 Opportunities to both Old and New Member States:
3.1.1 More trade
Accession to EU obligates joining member states to remove their trade barriers and open their market for free trade. A Free Trade Zone is established throughout EU member states. Lowering trade barriers leads to increased bilateral trade among member states.

Old member states still run a large trade surplus with new member states. Comparative advantage specialize new member states in low- and medium technology using ...Download file to see next pagesRead More
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