EN Official Journal of the European Union CE 88/308

(2004/C 88 E/0314)

WRITTEN QUESTION P-3907/02

by Ilda Figueiredo (GUE/NGL) to the Commission

(7 January 2003)

Subject: Economic and social consequences of EU enlargement

As I pointed out in a previous question to the Commission, the forthcoming enlargement of the EU to include the countries of Central and Eastern Europe will have significant economic and social consequences, in particular for regions and Member States with economic structures similar to these countries, such as Portugal.

Moreover, it is difficult to understand how it was possible to propose a funding framework for enlargement based solely on an assessment of the impact of enlargement ‘at EU level’, since it is clear that the EU does not have a homogenous economy and there are enormous differences between countries, regions and sectors of production.

As far as Portugal is concerned, various consequences of enlargement have been pointed out, such as the relocation of undertakings and the loss of direct foreign investments in favour of the new EU Member States against a background of increased competition, which will have adverse consequences for employment and the economic development of the country.

In the meantime — and only after the Copenhagen Summit had agreed on a financial framework for enlargement — the Commission has decided to set up a group of experts to study the consequences of enlargement and reply to ‘questions posed by the public’.

Will the Commission say:

— is it aware that the EU is not a homogenous economy and that the impact of enlargement will differ from country to country in the EU? If so, how does it assess this impact for each country;

— what financial resources does it intend to allocate and what measures does it intend to take to support those countries, regions and sectors most affected by enlargement, such as Portugal? Does it intend to create mechanisms (special economic development support programmes, as occurred in the case of previous enlargements) to help offset these adverse economic and social consequences;

— what objectives is it pursuing and what results does it hope to achieve with the recently formed group of experts?

Answer given by Mr Verheugen on behalf of the Commission

(29 January 2003)

The macroeconomic impact of the enlargement of the European Union is expected to be relatively small for the 15 Member States (EU-15).

The assessment of a study carried out within the Commission (1) is that a cumulated surplus of growth of 0,7 % for the 15 Member States will occur in the ten years following this forthcoming enlargement.

The economic impact will be higher in border regions neighbouring the candidate countries, mainly in Germany and Austria, and more remote regions will be less affected by enlargement.

Portugal's share in total exports of the candidate countries towards the Union was only 0,7 % in 2002 and its share in total imports of the candidate countries from the European Union was only 0,3 %.

Drawing the comparison between foreign direct investment towards candidate countries and allocations to Member States is much more complex. The European Agreements have promoted substantial market opening already before accession. According to the World Investment Report 2002 of the United Nations, gross inward investment in candidate countries increased continuously since 1996. The report also mentions that the Czech Republic received EUR 5,3 billion of foreign direct investment (FDI) in 2000 and EUR 5,5 billion in 2001, whereas Hungary received EUR 1,6 billion in 2000 and EUR 2,6 billion in 2001. Portugal, however, received EUR 6,9 billion in 2000 and EUR 6,7 billion in 2001, a remarkable increase as compared to the period 1996/1999. Therefore, the Commission considers enlargement a win-win situation.

Economic and social disparities within the EU-25 will at the beginning increase after enlargement. This is, however, a statistical effect, due to the lower level of gross domestic product (GDP) of the acceding countries.

Based on the decisions of the Copenhagen European Council (12 and 13 December 2002), the per capita assistance through structural funds in the new Member States will reach EUR 118 in 2006, whereas it stands at an average of EUR 217 in 2000/2006 in the objective 1 regions of the 15 Member States.

(1) The economic impact of enlargement. Enlargement Papers No 4, June 2001.