Implications of Eastward Enlargement

Implications of Eastward Enlargement 1
IMPLICATIONS OF EASTWARD ENLARGEMENT
By
Class (Course)
Professor (Tutor)
School (University)
City and State
The Date

Implications of Eastward Enlargement 2
Introduction
The eastward enlargement of European Union has an impressive record towards enlargement.
Judging from the increase in the number of member countries, one can confidently argue that
eastward enlargement is the most fruitful policy ever since the establishment of European
Economic Community (EEC) in 1957. The values of the European Union have widely spread
across Europe and beyond, the values include market economy, the rule of law, social
development, democracy and respect for the individual. The European Union appreciates
applicant members by granting them complete membership because of attaining prosperous
political and economic reform, according to the European Union likes. It is a strong, effective
and attractive soft power applied by the European Union. New countries involved in the
eastward enlargement undergo a lot of structural adjustments. The adjustments are a project that
is challenging and entails both risks and opportunities. Countries mainly involved in the
enlargement are from Central and Eastern European Countries (CEEC). In 2004, European
Union accepted ten new members mostly from eastern and central Europe they are; Poland,
Slovenia, Malta, Lithuania, Slovak Republic, Hungary, Latvia, Estonia, Cyprus, and the Czech
Republic, in 207 Romania and Bulgaria joined and in 2013 Croatia joined. Some of the
implications of eastward enlargement on new members include.
Positive Implications of eastward enlargements on new member states
Increase in trade dynamics
There has been an increase in the volume of trade in the new member states. New members
joining the union had to accept the external economic policy of East of European Union (EU)
that included the introduction of common external tariff and abolition of intra-EU trade barriers.

Implications of Eastward Enlargement 3
The new members who joined the eastward of the European Union enjoyed an increase in market
and the increase in investment opportunities. The increased investment opportunities stimulated
their profits and sales which resulted in increases in wealth in their markets. The new CEEC are
increasingly being integrated into the world markets, the rise in the degree of openness is
measured using the ratio of imports plus exports to GDP, which has increased from 56% to 80%
from 2001 to 2009 (Bojnec, and Fertő, 2015). Also, trade relations with the European Union
have intensified, but it is more strong with countries that are neighboring. The trade deficit has
deteriorated in the new member states because of the expansion of the trade relations. But the
reduction in the trade deficits depends on the country’s rate of restructuring the industry and
convergence. Countries that have presented an increased convergence in their level of
productivity and engaged in additional insightful industrial structures greatly reduce their trade
deficits. The new members especially those sharing a border with the European Union have a
pattern of exports that is similar to the one of incumbent members and hence their gains of trade
are high (Kallioras and Pinna, 2017).
Improved economic conditions
New member states experienced an improvement in their economic conditions. The enlarged
market ensured that they greatly gained from trade which in return improved their conditions.
Based on the free movement of capital, goods, labor, neo-liberal notion of political wellbeing
and services they assisted in promoting economic prosperity among new members (Fetahi-
Vehapi, Sadiku, and Petkovski, 2015). Also, there was an increase in foreign direct investment
which serves as a direct engine of high growth rate, high growth patterns and also promoted
sustainable developments. The argument was determined by the notion that joining members
would have the capability to adapt positively based on the comparative advantage they had rather

Implications of Eastward Enlargement 4
than adjustment leading to deindustrialization (Mann, 2015). The new members engaged in
creative destruction rather than engaging on simple destruction. Also, the conditions that the
European Union offered to the new members acted as a catalyst for economic change. The offer
of the European Union was a great determinant on whether the new members would accept to
join the EU. The conditions that the EU presented to the new members had a direct impact on
their decision since new members were compatible with the political and economic conditions of
Union (Caporale et al, 2015).
Promoting democracy
The Eastwards enlargement for the EU had a direct impact on the new members’ democratic
conditions. The EU impacted greatly on the democratic consolidation of the new member states
by applying political conditionality. The presence of democratic practices and institutions
ensured that there was a promotion of democracy in NMS (Kelemen and Blauberger, 2017). The
political conditions that the EU required the new members to fulfill before becoming members
also played an active role in ensuring that democracy was granted. Some of the political
conditions that new member states had to fulfill include; the rule of law, guaranteeing
democracy, protection, and respect for minorities and ensuring respect for human rights. The
union ensured that before approving the application of a new member state, they assessed the
judiciary, court, and constitution as inherent factors that determine the rule of law and
democratic stability (Bruszt and Langbein, 2017). But the union considered the fact the
institutional problems as just only shortcomings. The EU sets political settings had three
influences. First, it stimulated the establishment of new political agencies and institutions;
second, it helped in shaping the political selected behavior and finally, it helped in setting the
agenda for several public policies and reforms. The positive impacts that the enlargement of east