Enlargement: Ten countries join the European Union, May 2004

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Publication Date May 2004
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On 1 May 2004 the European Union welcomed 10 new Member States. In a Declaration marking the event, the Irish Presidency of the Council of the EU stated:

Today is a Day of Welcomes.
The day when we welcome ten new members into our European Union.
We welcome them with pride. We welcome them with hope.
We invite all the peoples of Europe to celebrate with us.
And we pause to reflect on what we, in the European Union, have created.
We must never forget that:
From war we have created peace.
From hatred we have created respect.
From division we have created union.
From dictatorship and oppression we have created vibrant and sturdy democracies.
From poverty we have created prosperity.

(extract from Declaration for A Day of Welcomes - 1 May 2004).

Despite the official words of welcome and the many formal and informal celebrations which took place throughout the new Europe, the advent of the Union's long-awaited and most significant enlargement was greeted less warmly than it might have been in some quarters. With a number of contentious items on the agenda, both 'old' and 'new' Member States have concerns about the future and tensions are already apparent.

Background

Enlargement negotiations were formally concluded at the December 2002 European Council in Copenhagen, when the 10 Acceding States were formally told they could join the EU. The Accession Treaty was signed in Athens on 16 April 2003, at an informal meeting of the European Council convened by the Greek Presidency of the Council of the EU. The Athens Declaration declared:

'We the representatives of the citizens and States of the European Union meet today on this symbolic site, under the Acropolis, to celebrate an historic event: The signing of the Accession Treaty for Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia.

Our achievement is unique. This Union represents our common determination to put an end to centuries of conflict and to transcend former divisions on our continent. This Union represents our will to embark on a new future based on cooperation, respect for diversity and mutual understanding.'

(see European Sources Online: In Focus: Athens Summit ...).

There is no denying the political achievement which the Union's latest expansion represents. As the Financial Times expressed it: 'Eight of these new members are former communist states, and bringing them into the EU fold is a historic achievement that at last staples together the two halves of Europe separated during the cold war.' (see: Benefits for all in a bigger club).

The historic significance of 1 May does, however, appear to have been lost to many EU leaders and their peoples. The FT was one of a number of media sources to criticise the 'cavilling' of the former: 'Last year President Jacques Chirac slapped accession states down for daring to disagree with French policy on Iraq, and now Chancellor Gerhard Schröder threatens financial retaliation on new EU states that use low tax rates to undercut German industry. In Britain, Tony Blair, a supposed champion of enlargement, removes the UK social benefit safety net from new EU state nationals.' (see: Benefits for all in a bigger club). 'How small-minded such moves seem, set against the broad sweep of European integration!' observed the FT.

European Sources Online: The Economist noted the same 'churlishness' amongst EU leaders, who 'have done little to persuade their electorates of the case for enlarging the EU, so public opinion is mostly hostile.' It also commented on negative attitudes towards the new Member States: 'Scare stories about millions of work-seeking migrants (or, contradictorily, work-shy benefit-scroungers) have led most governments to throw up barriers to the free flow of these new EU citizens for at least two years. The Union's paymasters want to hold down budget transfers to the new members, sternly telling them not to expect the generosity shown in the past to Spain or Ireland. And plenty of politicians have attacked supposedly “unfair” competition from the new countries, for example their dastardly habit of paying lower wages or collecting fewer taxes.' (see: Fanfare for a larger Europe).

The introduction of 'transitional measures' to prevent free movement is one of the latest and most notable issues associated with enlargement. According to European Voice the use of transitional measures 'particularly sticks in the throats of the newcomers - not just because it violates fundamental principles of the EU, but because it is widely seen as discriminatory, unnecessary and more the result of tabloid scare-stories than based on empirical evidence.' (see: New citizens greet EU accession with a shrug). Messages such as that from the Director-General of the Confederation of British Industry ('what we will be amazed by is how few people come to the UK. Those that will come will be the skilled people that we badly need' - see Financial Times: Businesses that embrace expansion 'to stay alive') seemed to be lost as the tabloid and anti-EU press insisted that countries such as the UK would be overwhelmed by migrants from the east.

At the same time as the EU15 have been trying to protect themselves from migrant workers, enlargement has been presented as an opportunity for their companies to benefit. Noting that the new members have infrastructure which needs improving and consumers who are increasing their purchasing power, the Financial Times said that 'the more developed countries of the EU, which can export goods, services and capital, are being handed a golden opportunity' (see: What's in it for EU).

This is only to be expected, as the EU15 and EU10 countries are looking for different things from enlargement. Speaking in mid-May, Internal Market Commissioner Fritz Bolkestein said: 'The “old” Member States must boost their flagging economies so that they can maintain existing living standards and continue to pay for their social security, pensions, healthcare and education. ... The “new” Member States, on the other hand, want to maintain the phenomenal growth rates which they have registered in recent years so that they can rapidly improve their living standards and “catch up” with the European average.' (see: Making the most of the Internal Market after Enlargement).

Enlargement's greatest impact is on the way in which the Union works. Just prior to accession, European Voice reported that 'Many observers believe that EU's decision-making will slow down radically, if not grind to a complete halt, from 1 May as the Union struggles to digest the ten new member states' (EU recruits to keep legislative wheels turning).

'The institutions ... are ill-prepared for an influx of so many countries, people and, not least, languages' noted The Economist (see: The future of Europe. A club in need of a vision).

One of the most significant changes is the growing tendency for serious debate amongst all EU leaders to be replaced by discussions amongst small groups of Member States. In the words of the Financial Times: 'When the EU had six members, national leaders could hammer out policy over dinner. At the last Brussels summit in March, attended by leaders of the new member states, they could hardly see from one end of the table to the other' (see: Eurocrats hire translators ...). A 'tour de table' can now take 90 minutes; there is limited time for debate. 'Instead' revealed the FT, 'more and more business is done in the corridors, and in the private suites in the margins. ... decisions are increasingly stitched up by sub-groups, including French-German-British “big three” summits, in advance of formal EU meetings.' Difficulty in reaching agreement amongst 25 members is also likely to see greater use of 'group' or 'bloc' positions: 'many agree future leadership will not be provided by fixed blocs but by shifting coalitions, established according to the issue at stake' (see Financial Times: The shock of the new). One such example in the area of justice and home affairs was highlighted by The Economist, which quoted a Commission official: 'There is nothing quite like this in other policy areas yet, but the practice is likely to spread. Caucuses could well be the future in an EU of 25' (see: Charlemagne: A party spoiled?).

This move towards forming shifting alliances is one aspect of the new Europe which makes it less likely that any 'superstate' will be formed. In the view of the Financial Times, although 'It is likely to be years, not months, before it becomes clear quite what sort of organisation will emerge from the latest upheaval. ... What is clear, however, is what it will not be. With 25 members now involved in negotiating the rules and policies of the EU, with different priorities, histories and standards of living, it is obvious that the union can never become the European superstate of Eurosceptic mythology' (see: New rules that give Europe what it wants).

Nevertheless, there is a clear need to ensure that the union functions as effectively as possible with 25 (soon to be nearer 30) members. The draft Constitutional Treaty was intended to improve decision-making. The Treaty might yet be adopted at the European Council on 17-18 June, although substantial areas of disagreement still exist.

Agreement might also rest on the attitude of the new Member States. As The Economist put it, 'few are fans of the new EU constitution' (see: Fanfare for a larger Europe), and because 'in the last dozen years they have been obliged to transform their own politics and economies in the most radical fashion [they] might have more ideas about how to transform the Union than the French, the Germans or anyone else' (see Financial Times: What's in it for EU).

One issue they are sure to have strong feelings on is the Union's budget. At the end of April, the Commission agreed proposals for the 2005 budget - just weeks after adopting the budget outline for 2007-2013 (see European Sources Online: In Focus: Financial Perspective 2007-2013 ...). Negotiations about those proposals are likely to see arguments between the Union's net contributors (including France, Germany and the UK) and net recipients - including the new Member States.

A further difficult issue looms in the form of Turkey's bid to join the Union. The European Commission will decide in October whether Turkey meets the political elements of the 'Copenhagen Criteria', which applicant countries must comply with in order to join the Union. If the Commission decides that the Criteria have been met, then the European Council is expected to open accession negotiations. The fact that Turkey has a large Moslem population makes any decision - in favour of accession or against it - highly contentious.

On 1 May the Financial Times commented that the EU 'enters a new era at a time of introspection and uncertainty, economically weak and struggling to impose itself on world events' (see: Europeans celebrate big push for unity). Part of the problem on the international stage has been the Union's inability to agree over involvement in the war on Iraq. The FT also suggested in another article that 'the new members will prove to be fervently Atlanticist - and therefore likely to add to the tensions that were exposed during last year's Iraq crisis' (see: The shock of the new ...), although a further piece said 'it is moot how long the new EU states - most of which have troops in Iraq - will maintain their largely pro-US line' (see: Benefits for all in a bigger club).

The view from the US also seems to be mixed, with some commentators suggesting enlargement is 'a positive development for the world's lone superpower' as the 10 are seen as more pro-American than some of the other Member States (see BBC News Online: EU enlargement: Good for US?).

The Union's new neighbours must also have mixed feelings over enlargement. The BBC reported that 'In Belarus, Ukraine and Russia there is a mixture of unease about the impact of the expanded EU and disappointment at missing out on the benefits of membership' (see: Little cheer on EU's eastern border). Commission President Romano Prodi has said that enlargement will probably be over once Bulgaria, Romania, Turkey and the Western Balkans - including Croatia and Serbia - have joined (see Financial Times: EU's 'big bang' would never be repeated, says Prodi). To help ease the concerns of some neighbouring countries, the Commission has adopted a European Neighbourhood Policy, intended to promote the benefits of the Single Market without the need for membership of the Union.

Further information within European Sources Online

European Sources Online: Topic Guides

Enlargement of the European Union

European Sources Online: In Focus

  31.05.04: European Neighbourhood Policy, May 2004
  10.05.04: Croatia: European Commission recommends opening of accession negotiations, April 2004
  01.03.04: Financial Perspective 2007-2013: European Commission adopts proposal, February 2004
  16.02.04: Free movement of people: migration from the 'new' to the 'old' Member States after May 2004, February 2004
  29.09.03: Enlargement of the European Union: The referendums during 2003 in the applicant countries, September 2003
  17.04.03: Enlargement: Athens Summit: signing of the Accession Treaty overshadowed by Iraq crisis, April 2003
  29.03.03: Balkan countries set for EU membership in the future, March 2003
  24.02.03: Croatia applies to join the EU, February 2003

European Sources Online: Financial Times

  06.05.04: New rules that give Europe what it wants
  03.05.04: EU's 'big bang' would never be repeated, says Prodi
  03.05.04: Hewitt says EU jobs fears unfounded
  03.05.04: Poles celebrate as EU's gates open
  01.05.04: Benefits for all in a bigger club
  01.05.04: Eurocrats hire translators to interpret expanded Union / Union's deputies hope a smarter address goes with high office
  01.05.04: Europeans celebrate big push for unity
  01.05.04: New borders create pain and envy for some
  01.05.04: Political acrobat risks all on Europe's 'big bang'
  01.05.04: What's in it for EU
  30.04.04: Businesses that embrace expansion 'to stay alive'
  28.04.04: The shock of the new: will eastward expansion invigorate the European Union - or leave it paralysed?

European Sources Online: European Voice

  29.04.04: EU recruits to keep legislative wheels turning
  29.04.04: EU's big chance to extend peace, stability, democracy and prosperity
  29.04.04: Fears of mass migration unfounded
  29.04.04: Guarding Europe's new 'iron curtain'
  29.04.04: New citizens greet EU accession with a shrug
  29.04.04: New EU heads of state need to learn old negotiating skills

European Sources Online: The Economist

  01.05.04: Charlemagne: A party spoiled?
  01.05.04: Fanfare for a larger Europe
  01.05.04: The future of Europe. A club in need of a vision

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission

DG Enlargement

Homepage

DG Press and Communication

Press releases
  26.05.04: Commission adopts measures to match supply and demand for translation [IP/04/679]
  12.05.04: Commission initiates budgetary surveillance for new Member States [IP/04/631]
  11.05.04: Appointment of Members of the European Commission [PRES/04/119]
  07.05.04: Appointment of members of the Court of Auditors [PRES/04/131]
  07.05.04: Following enlargement, new Members of the European Court of Auditors nominated today [ECA/04/11]
  04.05.04: Joint statement on EU Enlargement and EU-Russia relations [PRES/04/122]
  30.04.04: Enlargement What's in it for trade? [IP/04/577]
  30.04.04: Statement of President Prodi on enlargement [IP/04/576]
  28.04.04: EU budget for 2005: Commission presents its proposal for the enlarged Union [IP/04/554]
  27.04.04: EU and Russia confirm the extension of the PCA to the enlarged EU [IP/04/549]
Speeches
  02.06.04: Dalia Grybauskaite: Enlargement of the European Economic and Social Committee [SPEECH/04/278]
  27.05.04: Erkki Liikanen: “An Industrial Policy for an Enlarged Europe” [SPEECH/04/268]
  13.05.04: Fritz Bolkestein: Making the most of the Internal Market after Enlargement [SPEECH/04/245]
  11.05.04: Franz Fischler: Farming for the future: CAP reform, Enlargement and the WTO [SPEECH/04/244]
  10.05.04: Stavros Dimas: Setting a new agenda: future priorities for cohesion policy [SPEECH/04/233]
  03.05.04: Romano Prodi: Accession Day Press conference [SPEECH/04/221]
  30.04.04: Romano Prodi: Enlargement and the prospects for growth [SPEECH/04/214]
Memos
  28.04.04: European institutions will take on the challenges of enlargement without any explosion in administrative costs [MEMO/04/97]

Irish Presidency of the Council of the EU

Homepage
Day of Welcomes
  01.05.04: Mr. Bertie Ahern, Mr. Pat Cox and Mr. Romano Prodi address Accession Day Conference of the Three Presidents

Media organisations

BBC News Online

  05.05.04: European farmers' clouded future
  04.05.04: Viewpoints: Where is the EU heading?
  03.05.04: EU enlargement: Good for US?
  01.05.04: Bigger EU 'will net UK billions'
  01.05.04: Catching the bus to a new life
  01.05.04: EU celebrates historic moment
  01.05.04: EU enlargement 'huge opportunity'
  01.05.04: European press jubilant over enlargement
  01.05.04: Little cheer on EU's eastern border
  01.05.04: Q&A: EU enlargement
  30.04.04: Business impact of EU expansion
  30.04.04: Historic day heralds fresh hopes
  30.04.04: Wait-and-see Hungary lukewarm on EU
  29.04.04: European press review
  26.04.04: Analysis: Eastern Europe reborn

Eric Davies
Researcher
Compiled: May 2004

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