Romania and European Union Enlargement

This paper looks at the position of Romania in the run-up to European Union membership. It starts by comparing the EU’s 2004 Eastern enlargement with previous enlargements. It ap-pears that the EU became poorer by every single enlargement. The EU’s GDP per capita decreased each time relative to GDP per capita of the six founding member states (Belgium, France, Germany, Italy, Luxembourg and the Netherlands). Also, there appear to be good economic reasons for the postponement of Romania's accession until 2007 (or 2008). Romania did not achieve macro-economic stability as fast as the other countries in the region, its welfare level is lower and its progress in establishing a market economy is slower compared to the countries that joined the EU in 2004. In addition, it has realized little progress in the fight against corruption. Finally, the paper looks at the situation created by the rejection of the draft constitu-tional treaty by the French and Dutch voters in 2004. It presents five options. The most likely seems that the EU will proceed on the basis of the Nice Treaty and political agreements. Fur-ther enlargements will be much more difficult to realize than in the past. This does not apply to Bulgaria and Romania, as they will join the EU in 2007 or 2008. It does apply, however, to Turkey and the former Yugoslav republics.European Union, enlargement, Romania

Europe: the 1990s and beyond

Europe’s borders are not defined and the European Commission rejects a static definition. This paper looks at the Eastern enlargement of the European Union. It applies a political economy of reform based on a World Bank analysis tracing the paths of winners and losers from the transition. Most of the applicant countries have adopted a part of the necessary legislation to bring their monetary system in line with the requirements of the EMU acquis and the Maastricht conditions. Enlargement of the Economic and Monetary Union will most likely offer both static and dynamic prosperity benefits that are comparable to the long-term advantages of the introduction of the euro. The economic implications for the applicant countries tend to be significant, but the European Union will hardly be affected by the Eastern enlargement from a strictly economic point of view. Thus, the enlargement process seems more important politically than economically. The rationale behind the Eastern enlargement is not the economic effect, but the preservation of stability in Europe.European Union enlargement, transition

The Economies in the Black Sea Region: How Did They Fare after the Collapse of the Soviet Union?

This paper analyzes the economic developments in countries bordering the Black Sea. Of the three former soviet republics bordering the Black Sea, Georgia showed the best economic per-formance, in particular in the late 1990s. The economic performance of Russia and Ukraine is poor. Their economies shrank severely in the 1990s. Though the transition depression seems to have bottomed out, it is far from certain that the economic recovery is sustainable. The Russian economy might still have been shrinking without the support of high oil prices. Of the European Union candidate member-countries bordering the Black Sea Bulgaria’s eco-nomic performance is considerably better than Romania’s. However, the high unemployment rates and the corruption problem still pose big problems in both countries. They will have a long way to go before accession to the European Union can be realized. Turkey combined high economic growth with high inflation in the 1990s. The stabilization program does not meet its objectives and accession to the European Union is still far away.Black Sea region, former soviet republics

Enlarging the European Union: Taxation and Corruption in the New Member States

This paper addresses the run up to the recent European Union enlargement. It considers the accession of 10 Eastern European countries in view of the pre-existing economic conditions. The paper also raises the question how the new member states can tackle their deficit problems. In particular, the paper pays attention to the question at what point the emphasis should be placed on cutting expenditure rather than raising revenues. Furthermore, the paper addresses tax capacity and tax effort in the new member states. Finally, the paper looks at possible negative relationships between corruption and tax effort on the one hand and corruption and foreign direct investments on the other.EU enlargement, transition economics, tax effort, tax capacity