EPC EDUCATION AND TRAINING – Applications for Membership of the EU Turkey - April 1987 Cyprus - July 1990 Malta - July 1990 Hungary

EPC EDUCATION AND TRAINING – www.epctraining.be

Applications for Membership of the EU

Turkey - April 1987Cyprus - July 1990Malta - July 1990Hungary - March 1994Poland - April 1994Romania - June 1995Slovakia - June 1995Latvia - October 1995Estonia - November 1995Lithuania - December 1995Bulgaria - December 1995Czech Rep. - January 1996Slovenia - June 1996Croatia – February 2003Macedonia – Spring 2004


EU USA Japan0

100

200

300

400

450 million

272 million

126 million

Population from May 2004

82%

18%


Increase in area

17%

83%


Population change

EU94%

ACC6%


GDP change


Bilateral European Agreements between the EU and applicants have created convergence with the EU in

economic, political and social areas.

Has covered a wide range of issues such as: trade, political dialogue, legal approximation and other

areas of cooperation, including industry, environment, transport and customs.

We have practiced membership for a decade already:

Important effects of Enlargement


•A more peaceful Europe

•A Europe of nearly half a billion inhabitants

•Addition of rapidly growing economies, boosting economic growth and job creation

•Better quality of life for citizens through the protection of the environment, and the fight against crime, drugs and immigration.

•Wider cultural diversity

•Stronger role for the EU in world affairs

• Stable democracies have emerged in a record period

• Economic reforms have proven successful, leading to high rates of economic growth

• EUs financial assistance and the prospect of EU membership have stimulated development

• Trade and investment has developed well


Any progress yet?


0

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Lux Ire Den Aus UK Net Bel Swe Fra Fin Ger Ita Spa Por Gre

GDP per Capita – 2003Index. EU-15 = 100. PPS

US: 139; Japan: 102

EPC EDUCATION AND TRAINING – www.epctraining.beEPC EDUCATION AND TRAINING – www.epctraining.be

GDP per Capita – 2003Index. EU-15 = 100. PPS

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Growth Rate of GDP – 2003Percentage change on previous year

US: 2; Japan: 0,3

%

Annual Growth in GDP

0

1

2

3

4

5

1999 2000 2001 2002 2003 2004

EU ACC


%


Total Unemployment Rate -2003%

USA: 6,0Japan: 5,3

0

2

4

6

8

10

12

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16

18

20

Employment by sector 2001

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70

Agriculture Industry and construction Services

EU ACC


Sector effects


•Risk sectors are characterised by high labour intensity. Accession countries have favourable wage/productivity ratio

•The labour force in the accession countries is well educated so some more ‘skill-intensive’ sectors might come under pressure in the EU as well

•In the service sectors, advantages for the EU are mainly in the fields of business and financial services, whereas among the accession countries’ exports, tourism and transportation services are dominant


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lLabour productivity

GDP in PPS per person employed relative to EU-15 = 100. 2003

US: 120,7Japan: 89,4

Earnings Average gross annual earnings in industry and services, EUR, 2001

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Wage/Productivity


New Member States roughly delivers half the productivity for a quarter of the price

Threat or opportunity?


The knowledge economy:Gross domestic expenditure on R&D

% of GDP - 2000

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

%


0

5

10

15

20

25

30

35

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45

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55

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65

70

The knowledge economy: Internet penetration in EU households - 2003%


The knowledge economy: Internet penetration in enterprises 2003%

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The knowledge economy: Patent applications to European Patent Office

Per 1 million inhabitants - 2001


Energy intensity of the economy- 2001

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Energy intensity of the economy- 2001

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Business effects – Four drivers


•Strong boost to foreign direct investment due to higher confidence in a predictable political and regulatory framework.

•Raising training and skills standards, as well as productivity improvements, technology transfers, modernised plant and equipment, and better environment and social standards.

•Higher levels of international competitiveness in both the new and the old Member States.

•Increased cross-border trade between the new and the old Member States.

Regional effects


•Countries with no borders with the new Member States will be affected less by the increase of competition from the accession countries

•The impact on countries with borders to the new members will be much higher: They will benefit more from the demand in the accession countries but also fell increase in competition

Impact on SMEs


In many sectors the impact will be restricted to regions close to the new EU members.

Micro and small enterprises tend to serve local needs and impact will be more moderate.

Medium-sized companies are often hampered in their international activities by transaction costs, which will be reduced because of enlargement

Medium sized companies will have new partnership and market opportunities in the enlarged market. Requires an effort!

The business environmentLevel of cooruption: Transparency Internnational 2003


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Investment, enlargement and SMEs


•Enlargement will mean a reduction of transaction costs due to Internal Market.

•Therefore, enlargement could improve the position of SMEs in terms of trade and investment, but the question remains as to whether and which SMEs will invest.

•Partnership opportunities should be considered.

Enlargement: Threat or opportunity for SMEs?

Documents

EPC EDUCATION AND TRAINING – Applications for Membership of the EU Turkey - April 1987 Cyprus - July 1990 Malta - July 1990 Hungary