Shaping the new Europe. Economic policy challenges of European Union enlargement

Abstract:

The aim of this book is to identify some of the most important challenges posed by the enlargement of the European Union and to discuss possible policy responses.

The work is organised in six parts. Part one addresses the macroeconomics policy issues, and in chapter one a framework is developed for macroeconomics policy analysis during the transition to membership of the EU and the euro zone. Chapter two evaluates the pros and cons of participation in the new exchange rate system (and eventually in the economic and monetary union) for the accession candidates of Central and Eastern Europe.

Part two is devoted to sectoral issues - trade policies, competition policy and financial sector reform. Chapter three examines the key reasons for the absence of a clear trade doctrine among the CEECs and reviews likely EU-CEEC interactions on trade matters in the years to come. Chapter four explores the restructuring of the banking sector in Hungary. The fifth chapter looks at the transitional elements of competition policy and the required adjustment as experienced in Hungary.

Part three considers the economic effects of enlargement. Chapter six explores the negotiations for accession by the CEECs and the impact of the Copenhagen Agreement, while EU enlargement as an economic challenge is the focus of chapter seven.

The lessons to be learned from earlier accessions - specifically Ireland, Greece, Portugal and Spain - are discussed in chapter eight which opens part four. Chapter nine focuses upon the code of conduct inherent in participation in the ERM and how it allowed Portugal to qualify for economic and monetary union. The experience of Greece is featured in chapter ten; the long period of adjustment it endured during almost twenty years of Association was beset by economic and political difficulties.

Part five, which explores the growing disparities in Europe, opens with chapter eleven which addresses the impact of enlargement on economic disparities in Central and Eastern Europe. Chapter twelve moves on to the prospects for further EU enlargement to the South East - comprising the former states of Yugoslavia (except Slovenia), Albania and the two current candidate countries, Bulgaria and Romania. Discussion in chapter thirteen concentrates on the impact of EU enlargement on countries beyond the New Frontiers.

Chapter fourteen, which comprises part six of the volume, presents contributions from panel discussions on the political and economic challenges facing the 'New Europe'.

The work will interest scholars, students, researchers, policy makers engaged in the fields of European studies, economics and international relations.

Michael A. Landesmann is Scientific Director of the Vienna Institute for International Economic Studies and Professor of Economics at the Johannes Kepler University, Linz. Dariusz K. Rosati is Professor of Economics at the Warsaw School of Economics and a member of the Monetary Policy Council of the National Bank of Poland.