Section Menu

EU Enlargement

The UK is strongly committed to EU enlargement and has been at the forefront of the enlargement process. Enlargement has expanded the Single Market and increased its effectiveness through removing barriers to trade, thereby offering greater opportunities to UK business and benefits to our consumers. It has strengthened Members’ economies, offering businesses and citizens the full benefits of a competitive market – built on the principles of the free movement of goods, services, workers and capital – which following the most recent round of enlargement totals 450 million people.

The enlarged also EU gives us stronger influence in shaping global action to meet today’s challenges and helps us respond effectively to the challenges and opportunities of globalisation. UK support is however contingent upon applicant countries fully meeting the entry criteria and we will contribute to the Commission’s rigorous assessment and benchmarking process throughout the entry negotiations.

The Foreign and Commonwealth Office (FCO) leads on enlargement overall and coordinates policy for the UK. However, BIS has a very significant interest as enlargement and closer EU integration support our top level objectives of extending open, fair and competitive markets and removing existing barriers to trade, especially through the expansion of the EU internal market. We are therefore work closely with the FCO to ensure that BIS and UK business interests are represented in the negotiations between the EU and each applicant country, particularly in relation to single market issues, competition, social policy, and industrial policy.

Economic Benefits

The main economic benefits of EU Enlargement are as follows:

• EU enlargement has brought down barriers to trade and business. UK companies have benefited from access to the largest single market for trade and investment in the world.
• The economic reforms adopted by the new members increase their purchasing power and thus the demand for EU goods and services, opening new markets for UK business.
• The international competitiveness of UK companies is increased – they will benefit from cheaper inputs, a larger and more diverse labour market, additional opportunities for technology transfers and greater economies of scale.
• The further liberalisation of trade in goods and services in the New Member States will bring about shifts in production in certain sectors that will enable the UK to focus on areas where we have a comparative advantage, such as financial services, increasing economic efficiency.
• UK consumers benefit from cheaper and a wider choice of imports, enabling them to spend more on other goods and services.
• UK firms do not compete on labour costs alone, but seek to maximise productivity and higher value-added activities.
  New Member States alignment with EU Regulations has meant that the British businesses that were already operating in the new Member States have benefited from a less risky and more familiar operating environment. And UK firms have benefited from reduced compliance costs, eg with regard to import/export regulations.
• The creation of a wider single market has provided businesses (particularly the service and trade sectors) with more export opportunities – with the 2004 accession adding 75 million consumers to the EU’s internal market.

For further information on EU Enlargement please see FCO's  and EU Commission's websites under the External Links section on the right of this page