Economic
Benefits
- Enlargement
will:
- Unite
Europe in peace and stability, cementing the process
of political and economic reform, already underway
in the countries of Central and Eastern Europe.
- Improve
co-operation on fighting international crime and
drug trafficking.
- Entrench
democracy and respect for human rights.
- Improve
environmental standards across Europe.
- Result
in a number of economic benefits for the EU.
The Economic Benefits of Enlargement
GDP Growth and more Jobs
The
expansion of the single market is central to enlargement.
It will have a positive impact on Europe as a whole.
Enlargement will enhance GDP growth both in candidate
countries and in the present EU15. Independent research
estimates that the accession of the Central and Eastern
applicants will boost UK GDP by £1.75bn. The
accession countries are likely to grow faster than the
current member states (EU15). The EU15 will benefit
from the increase in trade and investment opportunities
in the candidate countries. The European Round Table
of Industrialists has predicted this will create
300 000 more jobs in the EU 15.
Bringing
down Barriers to Business
Removal
of trade barriers has been a gradual process since
the signature of the Europe and Association Agreements
between individual candidate countries and the EU. These
guaranteed tariff-free trade in most industrial products.
Accession requires the adoption of common tariffs at
the external borders of the community and the removal
of any internal tariffs and quotas. Other barriers to
doing business with candidate countries are also coming
down. It will become easier to do business across
Europe, with a common regulatory framework and
certification standards applying to all EU members.
Barriers to technology transfer will also be reduced
and it will be easier to share research acting as a
spur to innovation across Europe.
A
Common Market
Enlargement
will create the world’s largest single market
with nearly 500 million consumers. Adoption of harmonised
standards of certification and testing will make
it easier to trade goods. This should benefit UK consumers,
giving them access to a wider range of goods and
services. It will also give businesses a greater
choice of suppliers. EU rules on government purchasing
mean that candidates must stop preferential treatment
for their domestic providers in works and supply contracts.
Enlargement will speed up the removal of remaining barriers
to the free movement of capital across the EU.
More
Opportunities
Enlargement
should increase trade and investment opportunities,
as the economies of candidate countries grow and
their consumers become more prosperous. Growth in the
candidate countries will also have a positive impact
on the economic development of other southern and eastern
European states, opening up more opportunities to
the UK in the longer run.
On
the economic development of other southern and eastern
European states, opening up more opportunities to the
UK in the longer run. The Economists Paper can be found
at http://www.dti.gov.uk/ewt/tieuenlarge.pdf
If
you have any questions please contact DTI’s enlargement
unit:
Enlargement
and Wider Europe Unit
European and World Trade Directorate
Department of Trade and Industry
1 Victoria Street
SW1H 0ET
Michael Porter
Tel: 020 7215 6078
Fax: 020 7215 2235
Email: michael.porter@dti.gsi.gov.uk
