Eu Enlargement 2004 2007

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The Economic Impact of the 2004 and 2007 Enlargements on the European Union

„Critically Discuss the Economic and Political Impact of the 2004 and 2007 Enlargements on the European Union"

The following text deals with the most recent enlargements of the European Union which took place in 2004 and 2007, also referred to as the 10+2 Round. In contrast the term EU-15 is used to describe the states which made up the EU before the 2004 and 2007 enlargements. The issue that is being discussed relates to the economic impact of this enlargement round on the European Union. For practical reasons only some aspects of the economic impact on the European Union will be discussed. This seems to be an important issue since the 10+2 round
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And secondly the members who are net-contributers to the Community budget wish the level of budgetary expenditures to stay the same since there has not yet been an agreement on a financing system which is more fair.(Mayhem 2000, p.7)
This keeps the costs of enlargement relatively cheap for the EU in terms of finances but the economic weaknesss of the acceding members may be wrongly assesed and insufficiently supported.(Baltas 2004, p.147)

If we look at the economic structures of the new member states we find that they contribute a large but rather inefficient agricutural sector: "In total, enlargement to the CEECs will more than double the size of the EU 's agricultural labour force, increase its agricutural area by about a half, but raise its output by about only 12 percent"(Nugent 2004, p.14) The problem here is similar to that facing cohesion funding and so is the solution. Common Agricultural Policy(CAP) support was to be gradually phased-in up to 2013. The change in the agricultural sector induced by the new member states is one of the reasons why there have been debates on agricultural reform and it will be a key issue in the enlarged EU.
The are several reasons why the EU-15 made a modest financial support for enlargement. Scarcity of financial means imposed by the European Monetary Union(EMU) is one of them. The paymaster of
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