SPEECH/09/252
Olli
Rehn
EU Commissioner for Enlargement
A Balance Sheet of
Eastern EU enlargement 5 Years
After
Deutsche Bank EU affairs briefing
Brussels, 15 May 2009,
11:30-13:30h
Ladies and Gentlemen,
We are celebrating a historic double anniversary this year: the 20th anniversary of the fall of the Berlin Wall and the Velvet Revolutions of Central and Eastern Europe, and the 5th anniversary of the 2004 enlargement that reunified the European continent. It is the right time to make a balance sheet on the impact of EU enlargement.
A fair and factual debate on the political and economic impact of the 2004 enlargement will help us reflect analytically also on the future of the EU. This event and the study conducted by Deutsche Bank Research are a very important and very welcome contribution to that debate.
I am a social scientist by training, with international political economy as my main interest, and I must say I am very impressed by the balanced and analytical nature of the report. It provides most useful insights, for instance, on the virtuous circle of institution-building, foreign investment and economic development, as well as on the step-by-step future enlargement of the euro-zone. Besides, your study also has the merit of being more outspoken than a serving Commissioner can ever be regarding individual Member States.
At the same time, I have to admit that I didn't really find in the study that the 2004 enlargement would have been such a "mixed picture" to which its title refers. To me, the picture seems rather clear. There have been some teething problems, but the overall balance sheet is clearly positive.
Let me provide a snapshot of this balance sheet in three dimensions: first, the democratic transformation; second, the economic impact, and thirdly, the institutional development.
The 2004 enlargement transformed the European continent for the better. It was an extraordinary historic achievement.
Even before the newest members joined, the EU accession process served as a beacon of hope, a driver of personal freedom, and a catalyst for economic change. It helped advance the rule of law and human rights. It brought about peaceful, democratic change and extended the European economic area to 500 million people.
Size matters. Enlargement increased the EU's weight in the world, be it in trade negotiations or when addressing other issues of global nature, such as climate change or development. It increased our crisis management capacity, especially for peace-keeping missions.
The EU has become a regulatory superpower driving policy-making in many areas. To name a few examples, the economic recovery package and last year's climate and energy package are paving the way for successful global governance on these critical challenges.
Economically, size matters too. All empirical evidence points out that the larger internal market has induced more trade, more profitable investments, and thus more growth and jobs. This is also the essential conclusion of the Deutsche Bank study at hand now.
Trade between the new and not-so-new Member States grew almost threefold in less than ten years. Among the new member states, it grew even fivefold in the same period. These are a key reason why, from 2004 until the financial crisis broke out in full, the EU enjoyed solid growth in employment, both in new and not-so-new members.
But times they're-a-changin', some will say. Shouldn't enlargement take a back seat now, when the economic crisis threatens European jobs and welfare? It is not time to look inward for a while?
It is perfectly clear to me and the Commission that the economy and jobs are the first and foremost concerns of our citizens today. It is therefore right that they should top the EU's agenda.
However, while combating the economic recession, we must not make EU enlargement a scapegoat for a problem it did not create.
Europe's economic troubles were not created by Czech autoworkers or Bulgarian internet programmers. They stem from system errors of financial capitalism – and originate from Wall Street, not from the cosy, relaxed, friendly streets of Prague or Sofia.
We must tackle myths with facts, and address our citizens' concerns with smart and effective economic policies. Questioning our commitments in EU enlargement will not help us to tackle the economic downturn. Recession in Poland does not mean economic growth in Germany, or a recession in Estonia growth in Finland. The reverse is true.
In sum, for the older Member States too, enlargement has been a net gain. The EU's enlargement to Central and Eastern Europe was more than a historic mission. It was a matter of enlightened self-interest as well, to enhance our own economic growth, security and freedom.
* * *
Thirdly, on institutional development: There is also no doubt that the EU has become more heterogeneous, which does require a somewhat greater effort to reach common positions and policies.
Jacques Delors once said that to grow from 12 to 15 and from 25 to 27, we would need time, family spirit and understanding of each others' psychology and traditions. That is, the contract of marriage between 27 countries has to be consolidated and further reinforced. I agree.
So while the EU continues to function rather well at 27, we still need to continue our institutional and internal reforms so that the EU can work better – in a more open and democratic way, and more effectively and efficiently – in order to deliver what our citizens expect and to have more weight of our interests in the world. This is fundamentally what the Lisbon Treaty is about, and why we need it now. We can certainly continue to pursue deepening and widening in parallel. This has been, and remains, the best recipe to build a strong and united Europe.
As in Central and Eastern Europe before, the European perspective is once again exercising its magnetic pull in South East Europe today. Croatia remains likely to be the 28th Member State.
Compared to many other regions in the world, South East Europe benefits from relative political stability at the moment – not least thanks to its European perspective.
Ladies and Gentlemen,
Beyond simply proving the sceptics wrong, the 2004 enlargement has been a success on its own terms.
Today, Europe is reunited and free. Let's keep it that way. And let's complete our work in South East Europe, and – who knows – in Northern Europe, with Iceland perhaps applying for EU membership rather soon.
This is a tough agenda, but a beautiful mission, as European construction should always be.
Thank you for the attention.