These problems such as the ever increasing size of the subsidy programs and additional payments to keep countries in line with the overall EU policy have imposed some limits on the current enlargement process.
Despite an ever increasing degree of interest shown by these East European countries in joining the EU the organization has almost come to a stretching point where there is little or no room for further expansion. This dilemma is basically attributed to the very structural constraints experienced by the former communist economies in Eastern Europe (Jacobsen, 1997). For instance when countries like Poland, Hungary and Rumania joined the EU during the initial stage following the collapse of Communism in Eastern Europe there was much greater hope about the future of the EU as an economic union. Subsequently with further enlargement and monetary union the organization began to develop first the structural constraints and next trade related problems on the allocation of subsidy funds.
The future of the EU now is more or less determined by how best the organization would be able to absorb those new entrants and how best the structural problems arising from its subsidy programs would be handled. Various writers have pointed out that the EU is basically a behemoth that is much less likely to absorb the remaining East European countries in to the fold with any degree of success.
The rapid transformation of th...
However what the EU could do as a customs union and then as an economic union is no more possible under the present dispensation. Primarily the EU has been evolving on unbridled largesse in the form of farm and agricultural subsidies. When all these subsidy programs culminated in the Common Agricultural Policy (CAP) the organization did little realize what was ahead. In fact it is the CAP that caused the current impasse between the US government and the EU on international trade.
The World Trade Organization (WTO) and other international trade forums have almost failed to reconcile the two sides to the conflict. Similarly Japan and the Association of South East Asian Nations (ASEAN) have objected to the presence of CAP in the EU. Despite these disputes the EU has been compelled by an ever increasing necessity to maintain a minimum level of subsidies to the new member countries. The net result of this commitment is the further aggravation of trade relations with the US in particular and other countries in general. The EU has come a long way in giving farm and agricultural subsidies to its powerful community of farm producers who demand the continuation of the programs irrespective of the global pressure to wind them up. These trade related outcomes have compelled the EU to adopt some new programs and to redesign the existing programs in keeping with the adjustments required by its member countries' commitments to the WTO.
This paper would particularly focus attention on the current phase of EU enlargement arising from the post-communism developments in Eastern Europe while the theoretical considerations of enlargement related structural constraints would be discussed with reference to the empirical evidence on the EU's inability to absorb new
European Union (EU) enlargement process has received much wider attention in the current period due to two main reasons. In the first place the East European countries have sought to live on the EU's farm subsidies as an inevitable consequence of their neglected economies for decades under communism…
The conclusion from this study states that fears regarding expansion are statistically baseless. Membership to the European Union offers great benefit for newly inducted countries, with minimal to no impact on preexisting ones. Fears regarding political or economic unrest are largely unfounded, and so must be eliminated rather than acting upon them.
4 III. The main challenges associated with the formulation of industrial policy in the European Union ………………………. 6 a. Framework aspect …………………………………………. 8 b. Horizontal industrial policy in the EU ……………………..
The increase of the number of member states, through a series of enlargement processes, gave to the Union the power required in order to intervene drastically in conflicts and negotiations developed in the international community. However, the effective completion of these enlargements required the introduction of differentiations in the Union’s politics and policy processes.
The EU is built with a series of treaties made with its different member states. Historically, the EU was formed to promote peace and economic prosperity especially in Europe after the occurrence of World War II. Since the beginning of the 1950s, the integration of Europe has significantly augmented to entail conducting various financial activities like developing a single market in which goods, capital and people moves freely, a common trade policy, an ordinary agriculture policy, environmental policy and common currency (Euro) which is being used by 17 member states (Archick, 2013).
When EU in the 1990s also took into its fold the Northern European countries - Austria, Finland and Sweden - it was even better. The economies of these three countries were in such great shape that their EU membership influenced an increase in the union's per capita income.
Marain (2003:2) during policy analysis of EU enlargement found that the countries becoming the member states are entitled to have numerous benefits which includes removal of barriers from trade, investment and movement of labor, exchange of technological ideas, improvement in competition with foreign markets, corporate accountability, improved CEEC's as a destination of foreign investment, cheaper consumer goods, etc.1 But it had some drawbacks as well.
tablishment of common agricultural policies and support payments, including levies and price and structural supports. It is important to mention that the price of agricultural products is not set by the farmers but by the Council of Ministers through the European Agricultural Guidance and Guarantee Fund (EEAGF).3 As regards agricultural trade policies, these are the responsibility of the Special Committee for Agriculture.4 As a result of these measures, or to be more specific, because of CAP, the price of agricultural produce in the European Union are not related to the world market price and levies on agricultural imports ensure that cheap goods do not enter the EU agricultural produce c
According to the report the background to enlargement is explained in the first section. The reasons for supporting this policy position are explained in the next section. The recommendations for the future course of action for the EC are given in the last section. The European Union started as a six nation economic community in 1958.
The European Union has been expanding constantly since the early 1970s with each round of enlargement being unique and dynamic politically and economically. The European Union easily welcomes any European state that is deemed to be democratic, has a market economy, and has an administrative capacity to handle obligations and rights of theirs membership.
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