Austria, Finland and Sweden after 10 years in the EU: expected and achieved integration effects

Abstract

Austria, Finland and Sweden - all small highly developed industrial and rich countries - entered the EU in 1995. Their macroeconomic performance since then was quite different. Real GDP in Finland und Sweden increased faster than in EU average, while those of Austria fell back. Austria lost its second rank in GDP per capita (at PPS) and is now the fourth richest EU country; Sweden fell back from the seventh to the eight rank, while Finland improved its position from rank 11 to
nine. In a referendum in September 2003 Sweden refused to take over the Euro, whereas the other two countries are members of the Euro area. Ex post model simulations indicate that Finland appears to have profited most from EU membership (0.7 percentage point greater annual GDP growth since 1995), followed by Austria (+0.4 percent) and Sweden (+0.3 percent).