On May 1, 2004, the European Union will expand its markets and community to include 10 new members, mainly former Eastern Bloc countries: Estonia, Lithuania, Latvia, Poland, the Czech Republic, the Slovak Republic, Hungary, Slovenia, Malta and the Republic of Cyprus (European 1). The expanded EU will encompass the world’s largest trading bloc with more than 500 million people (Towards 1). In a recent two-day summit in Brussels, final arrangements were concluded to merge the ten applicant countries into the EU by May. A major obstacle, differences over the future of the Common Agricultural Policy (CAP) were finally hashed out when France and Germany agreed to terms arrived at during the summit.
Despite the intent to expand the EU to 25 member nations, there are many obstacles and potential challenges to overcome for the existing EU members and new member states if the trading bloc is to experience a smooth transition into the world’s largest trading bloc. From skepticism in the Midlands about the impact of membership to hostilities against foreign dominance in other states, there are a host of potential problems that still threaten the successful merging of the new member states into the existing EU. This analysis will discuss the agreements of the proposed expanded EU, including specific issues pertaining to existing and new member states.
Under the terms of the deal hammered out at the recent summit in Brussels, the following arrangements have been agreed to by existing EU members:
Farm subsidies for new member-states will be gradually phased in over a period of nine years.
The farm budget will rise from 40bn euros to 45bn euros by 2006, increasing 1% per year until 2013 to offset inflation.
The new members will receive 23bn euros in structural aid over the first three years.
The EU will ensure that they do not pay more into the EU budget than they get back between 2004 and 2006.
Despite the formalized ...