INTRODUCTION
OVERVIEW OF EU AND ITS ENLARGEMENT PROCESS
European Union enlargement is one of the motivated developments that the EU has ever undertaken which is in no doubt the bringing back of the European continent which has been divided during the world war. Previous enlargements has in no doubt been in place which the result has always ended up in a divided Europe, but this time around the recent enlargement is to help bring to the light of the day a better and a big Europe as a whole and make sue liberalization is free for all its member because these has been the dream of the pillars (founders) of enlargement. As for the member state in the Eastern and central Europe, this enlargement signifies the long awaiting reunion amongst its member state after the war The history of the European Union could be traced back to the 2nd world war; as it was aimed to end the bloody wars between member states and to restore peace & unity again within the European countries, the Europeans have made up their mind to avoid destruction and prevent killing themselves and forget all that happened during the war periods. After the war period, Europe was divided into two parts which is the (EAST AND WEST EUROPE).
The restoration of peace started from the west European nations as they created the council of Europe in 1949 and this council creation was a bold step to bring about peace, unity and cooperation between countries of the west. The founding European and Pioneering member countries are six in numbers and are as follow: GERMANY, ITALY, FRANCE, BELGIUM, LEXEMBOURG, and NETHERLAND.
One big bold step taken in the 1950s to unite the European countries was the European coal and steel community as this united the European countries Economically and politically in order to secure unity and long lasting peace. In the 1960s there were great revolution as member counties removed custom duties on goods and services exported and imported from each other and also allowing a free cross border trade for the first time in history; during this period farmers are really earning well as their was a lot of agricultural activities during this period and also a lot of agricultural product and food among member countries and the economy as a result is been improved and peace and unity reigned amongst these member countries.
The first enlargement took place in 1973 and it was witnessed when three new countries joined the existing six members and pioneering countries and these countries are the UNITED KIGDOM, IRELAND AND DENMARK, and this makes the member state to be nine altogether at this time, making the member the EU countries to be nine in total. This was a great thing as some countries were already convinced that it is possible to make peace reign among member state and at they were also willing to join the EU to pool resources together. In the 1970s the member state also had a regional policy to transfer huge sum of money to create jobs and infrastructure in poor areas. The first enlargement was a success and the aim of the EU which was to restore peace and bring member state together is coming to reality.
In the 1980s there was a revolution as three other new members state also joined EU(Greece, Spain, Portugal).During this period there was a problem to free trade of goods and this was as a result of differences in national regulations;
The SINGLE EUROPEAN MARKET was also created in the 1980s.The educational sector was also not left out as they made a positive contribution to the EU as it launches its ERAMUS PROGRAMME; which aim was to fund universities student who wish to up to a year in another European country which a lot of student benefited from this scheme. In the 1990s the European began to work as one big family and they see themselves as one big nation, during this period there was four freedoms which are (FREEDOM OF PEOPLE, GOODS, SERVICES AND MONEY) and two Treaties was also in place during this period (THE MAASTRICHT TREATY ON EU AND THE TRATY OF AMSTADAM). During this period the member state were also concerned on how to improve the security system and also to protect the environment during the course of its daily activity business. Three new states also joined the existing member state and they are (AUSTRALIA, FINLAND and SWEEDEN). Also during this period was a period where members can travel between member state countries without their passport being checked and this also brought and harmonise members of the EU together, and there was also a lot of improvement and development in the communication sector as the use of mobile phone and internet was in place.
Currently we experienced the biggest enlargement so far in (2005) as more countries joined the existing member state; A total of Ten countries joined the EU in (2005) making the EU enlargement a bigger place and a bigger market. The names of the new member’s counties are (HUNGRY, MALTA, POLAND, SLOVENIA, SLOVACIA, LATVIA, CYPRUS, ESTONIA, and CZECH REPUBLIC) This recent enlargement has also led to a stronger political and Economical society as a whole. All the member state has the mindset to fight crime and increase security among member state. The Euro was also introduced as it represents the single currency to be spent and used for trade purposes among European countries. The increasing number of the new member state and drive towards making Europe a better place has helped making EU culturally richer, stronger and better. The enlargement process has helped a long way in the building, developing and to restore the aims and objective of what democracy is known for and also to put an end to the wars and crises between the member countries and the European continent. The outcome of the enlargement is in no doubt clear as the European security is much strengthened compare to where it was before the enlargement took place. Citizens and the populace of member states could also benefit from the numerous benefit of enlargement amidst which the European Union enlargement has brought about a good impact on the economy and in return the standard of living of the citizens must like wisely be improved.
IMPACT OF ENLARGEMENT ON NEW AND OLD MEMBER STATES
The impact and benefit of the EU on the accession of new member state like Bulgaria and Romania is immeasurable
New members state like Bulgaria and Romania that recently joined will have a lot of benefit from the success and rapid economic growth the EU has been know for; some of the numerous benefit new members like Bulgaria and Romania will gain are:
1. FORIGN DIRECT INVESTMENT OPPURTUNITY
This is an economic growth indicator as member state and other foreign international company will be interested in their economy because of its potentials and attractiveness unlike before ascension of Bulgaria in 2007, it was known to be a corrupt country and has high entry barrier but now that it is a member of the EU, this impression will be off and it will be given a new image and also enjoy injection of fund to boost economy activities.
2. TRADE LIBERALIZATION
This is actually one of the key benefit of every EU member Bulgaria and Romania not exempted, this give the opportunity to trade freely without restriction and at no extra transaction cost with other member state this give more opportunity for a big single market with a world of variety and when country like Bulgaria joins, it will help in the development of the agricultural sector and also give the sector a future and hope as it will be able to move its agricultural product across border and to member state freely and get money in return and the plough this money back to the economy to ensure more productivity also it will improve the standard of living for the famers
3. FREE MOVERMENT OF LABOUR, GOODS AND SERVICES
This is as a result of an enlarged EU, members will be able to move freely from zones to zones without the need of a visa and also there will be movement of labour from Bulgaria or Romania to other member state since it is under the Shengen umbrella. This also gives room for cross border trade in term of goods and services and also gives rise to great inventions and innovations, this has also helped in a great way to make sure goods and services are moved freely without any inconvenience by removal of entry barriers, tariff, custom duties etc
4. EU TRANSFER
New members are going to benefit numerously from EU transfers not just in financial or monetary terms but technological wise, Bulgaria and Romania been new member of the EU will enjoy transfer of funds to assist boost its economy operations to make sure it is not left behind in anyway. There are also standards that has been transferred from EU to new member state to ensure quality and standards in everything and in every area and also to make sure that things are done in the right way and likewise to ensure that funds committed to this activities are really used for the purpose it which it has been assigned, some of the standards include (PHARE ISPA AND SAPARD)
The EU enlargement itself can be defined as a process of adding more countries to the existing member countries in as much they meet with the entire, necessary and basic requirement
The EU enlargement has helped in a lot of ways either from the old members or the new members point of view; some of the impact are as follow:
- It has helped to maintain and build peace and stability between member state
- It has helped in job creation and employment opportunities not only within a member state but across the 27 member country
- It has helped in the overall and rapid growth in the economy of the Union
- It has given opportunities for new and unique ideas and creative innovation
- It has given opportunity for a bigger trade zone
- It has given birth to trade liberalization
- Poorer countries or emerging economies that have joined the union has also benefitted from the financial assistance from the Union
- It brings and unite all member state as one; and gives them a loud voice to fight against illegality, crime and terrorism
- It has improved the standard of living of the citizens
It is in no doubt that the impact of enlargement has in one way or the other benefitted both the existing members and the recent member that has just joined the Union.
Old member also stand a greater opportunity of equal chances when it come to the competitive advantage in the newly enlarged market with skilled and experienced labour workforce with good qualification and also opportunity to invest in new markets Some other key impact and advantages are as follow:
BRINGING EUROPEANS TOGETHER AS ONE
The increase of the member state recently with their diverse and rich culture will automatically increase EU’s cultural diversity. EU enlargement will give birth to a lot of ideas and inventions and also a room for better understanding within the Europeans, although the enlargement will also result to an environment with various languages but with the spirit of oneness, EU institution will ensure that languages are respected and encourage member state to learn one another’s language. With the recent enlargement to make EU 27 member state, EU must try and make sure it reforms its decision making system to avoid argument and misunderstanding between member states and also make sure no preferential treatment and that every body is seen to be equal before the law irrespective of the size or population. Hence all member state must see themselves as one and embrace unity and must all work together to make Europe a better place to live and work.
ENRICHING EUROPEAN ECONOMY
The EU’s enlargement has actually proved itself as we are all witness of its numerous benefits some of which are Increased opportunity for both old and new member state as a result o0f new and open market and this can be seen in the course of recent times increase in trade and investment in member state and also its glaring that future members will also bring about open doors and opportunities to existing members and they will all benefit from the free trade between member state and their will be no restriction when it comes to exchange of goods and services between members, likewise they will benefit from liberalization of capital, various services and labour.
New members are also not left out as they also get the opportunity to add to the prosperity of the economy some of their contributions will be in form of injection of fund into the economy which give births to new and increased investment opportunity and as a result this will lead to further development in terms of large scale of production, their contribution will also be felt in term of their unique ideas and innovation in terms of technological know how which they bring into the European body when they have joined, the outcome will be seen in the skills demonstrated by the workforce, and increase in the level of technology; they can contribute or tap into the nourished economic and an economy with a stable political ground which is provided by EU member state
ENSURING EUROPE IS A SAFER PLACE FOR ITS CITIZENS
Corporation of member state to fight International Crime Both old and new member state has the mandate to ensue that they work in harmony to fight international crime by saying NO to illegal activities such as drug smuggling and human trafficking. But as the Central and Eastern Europe adopt similar and common standards, which is also been monitored by other member state this dodgy and creepy activities will be reduced and in no time come to an end and to makes people do not take advantage of the free border to move drugs and bandits.
Better control of immigration, Both old and future member state must also cooperate and work hand in hand and must realize that they have the responsibility to fight and work on the inflow of illegal citizen or immigrants and likewise asylum-seekers from other countries. As this category of people will be burden ad liability to the society. And also make sure there is no foreign treat in the society protecting the environment As both recent and existing member state conform and abide to EU rules and regulation as regards air and water pollution, if they abide by this rules, their immediate Environment becomes a much more safer place for its own citizens, and for members in neighbouring Countries. EU policy is in place to help reserve and safeguard their rich heritage of species and natural habitat. Hence this policy will not allow any member state to poison or pollute its environment causing hazard to the citizens.
Aside from its general environmental and Ecosystem protection, EU has also made sure that it operates on a world class safety measures when it comes to Nuclear. The EU is also working towards ensuring that its environment is totally safe and free from Nuclear hazards.
And to the Central and Eastern Europe, a proper level of safety measures has been put together to ensure its Nuclear plants are safe and are not harmful to its citizen. As this will in a long way make sure its citizens are safe.
When it comes to Food standards, EU has ensured that both its existing and new member state are been protected by appropriate food standards and also to enforce that these standard should be there and also be on the increase in recent times, new member states that are just joining the Union as a result of recent enlargement, should be ready to comply with these various standards and also food manufactures must ensure that proper food standards are in place and consumers do derive satisfaction in whatsoever they produce and the food product are not harmful to the human system Giving Europe a big voice in world affairs .
The increase of EU member state to 27 has given EU the ability to have influence on worlds event, it also gives them the edge to meet and tackle challenges as it relates to globalization, and to remain like this and be relevant in future, EU must ensure it works in unity at all times and in oneness and also in one voice Developing our partnership with neighbours in Europe At this point in time, EU must not see itself as an island but must also be willing to expand, in this case Like the common saying that “Two good heads are better than one”, I think this saying has a way of exploiting this point of mine, Irrespective of the recent enlargement which makes EU member state 27,it must still not isolate itself or see itself as an island but be willing to expand, explore new opportunities and break new grounds.
In a situation like this, EU has to establish and have a good understanding with its neighbouring country because they do not know the potentials and opportunities they possess or have and therefore they should not be looked down upon.
I think policies should be in place that will allow trade between member state of the EU and its neighbours as this will open doors to new market and give opportunities for a big market for citizens to trade in, filled with a wide range of varieties.
This will as a result bring about a good and strengthened economic and political relationship between member state of the EU and the neighbouring country. It is not a necessity that neighbouring country should join the EU but it is of a good opinion that a mutual relationship and understanding exist between EU and the Neighbouring countries as this will result in peace and corporation between them, and also a big market filled with variety it will also give room for investment opportunities.
EU ENLARGEMENT IMPACT ON INDUSTRY AND RESPONSES
Industries operating in this region are numerous and have gained a lot of new market opening and this will help the showcase what they are made up of and gives room for development and expansion; Some of the industries that are beneficiaries include the :
Call centre industry, Telephone industry, Courier companies etc
I. CALL CENTER INDUSRY(customer services)
Since the accession of new members like Romania and Bulgaria in 2007 there has been increase and rapid development in the call centre industry. Company who deal with customer services like the Communication service providers could outsource this part of their operation to this new member state because of its cheap, eligible and able labour workforce. Call centre industry have responded positively to the enlargement because of the opportunity to get workforce with different language, which is a big advantage and also to operates in economy with low taxes and less rules and regulation with political and economic stability and in this way it will be able to compete head to head with other countries like INDIA
II. TELEPHONE INDUSTRY
An economy without telecommunication is a dead one, in this light telephone and communication companies have responded positively to the enlargement, the Romania and Bulgaria accession ha s attracted companies like NOKIA which is known for its stylish and unique brand and also a world mobile producer to invest in its economy and other EU member state, Service providers like O2,ORANGE,T-MOBILE,3NETWORK can now have the opportunity to provide quality network services at cheaper rate to new member state customers
III. COURRIER INDUSTRY
Courier companies like FEDEX and DHL have responded well and also benefitted from recent enlargement as it delivers at appropriate time without any hassle due to the fact that countries like Romania and Bulgaria have reduced custom and excise duties and they can enjoy free movement of goods and services in a safe condition to member state and this has gone a long way in the development and expansion of this industry
CHALLENGES OF THE ENLARGEMENT
* Decision taking is going to be very hard as members of the EU state are now increased to 27 members; hence every member state will have different opinion about any issue.
* Cost of enlargement is expensive to any country who wants to join
* EU Free trade and free movement across borders would make it difficult to tackle any crime of any nature such as smuggling of contraband items.
* Language conflict and barrier
Cultural shock to either new member or existing members
DISADVANTAGES OF ENLARGEMENT
* The main loophole in enlargement is when enlargement comprises of poor countries, this is a big problem to other member state because they all have to contribute and invest in the economy activity of this poor country till its strong enough to stand on its own, hence any problem encountered by the poorer country is also the problem of other member state.
This also give bias appropriation of fund because more social fund will be diverted to poorer member counties which is not giving room for fair equity and equal distribution of resources.
There will also be increase in EU regional budget because of the number of the member state
* There will be transfer of skilled labourer from the one zone to the other usually from the East to the West in search for better greener pastures, Hence leaving part of the economy in jeopardy as no one will be able to replace the space of the skilled in the East
* Loose of Sovereignty: As soon as you become member of the union, you do not just do things on your own accord, but you are now governed by the European law and you must abide by it
* Sometimes illegal migration is also experienced during this kind enlargement
DISADVANTAGES OF NOT JOINING EU
* Participation in trade liberalization and free trade will not be possible
* The Economic growth will be slow compare to that of the EU member state
* Their Economy might not really be attractive for foreign direct investment compare to that of the EU member state
* Small market if not listed as an EU member compare to the Big market opportunity with variety between the EU member state.
CONCLUSION
EU enlargement is a significant one and a fast and rapid growing economy which is known for its stable economic and political structure, in habiting over half a billion (500 million) inhabitant. Its future is very bright as it can be seen in recent ascension of new countries, and its economy will always attract foreign investors and more countries to join to make it a bigger world zone. Its aim of establishment is coming to light and it is visible with economy, political proofs. It ability to bring about oneness among member state in term of culture, language, education; in to an extent is a great success.