UNUnited Nations Economic Commission for Europe

Press Releases 1996

[Index]
EASTERN EUROPEAN COUNTRIES: THE ROAD TO EU ACCESSION -
POLICY ISSUES AND THE NEED FOR A STRATEGY

9 December 1996

The United Nations Economic Commission for Europe (UN/ECE) releases its Economic Bulletin for Europe (Vol. 48/1996)

The political momentum for rapid entry has been built up, especially by leaders and policy makers in eastern Europe, and the year 2000 is widely quoted as the moment when some of the transition economies might join the Union. Even for the leading transition economies such an early date appears unrealistic, if only in view of the actual mechanics of the negotiation and ratification process, let alone more substantive issues says Paul Rayment, Director of the Division for Economic Analysis and Projections of the United Nations Economic Commission for Europe (UN/ECE) commenting on the findings of the Economic Bulletin for Europe.

There is little question that the enlargement of the European Union (EU) towards the countries of eastern Europe is an objective that is urgently desired by the eastern candidates themselves and supported in principle by most of the existing members of the EU. However, although the transition economies want to join as quickly as possible, in part to underpin their transition process, most of the existing members are unwilling to contemplate the admission of new members until agreement can be reached on deepening the integration of the existing Union and introducing new rules and procedures to enable the Union's business to be carried out more effectively. Thus, the persistent reminders from policy makers in the EU and the Commission that there can be no "widening" of the Union without "deepening" integration among the existing members. In the same context, the EU has also made it clear that there can be no compromise over the acquis communautaire: the admission of new members will not be possible unless they accept and apply the acquis in its entirety with minimal derogations during the period from entry to full membership.

Given the different priorities of existing and potential members of the EU, the present situation contains a considerable potential for upsets and disappointment, especially in eastern Europe. If, as a result of a conflict between the short-term interests of each side, enlargement is delayed beyond the current expectations of the east European candidates, there is a danger of widespread disillusionment with the "European project" in the transition economies with attendant risks to political stability and security in the region.

However, such an outcome is not only highly undesirable but it is also avoidable stresses Paul Rayment. A rushed and premature entry of the transition economies into the EU is unlikely to be in their longer-run economic interests if they are unable to face full-fledged competition in the single market . In such a case they would risk being confined to low value-added activities, subject to increasing competition from transition economies farther east and from the developing countries. A longer pre-accession period would give the candidates more time to restructure their economies and build up the comparative advantages required for them to participate as equal partners in the highly specialized and sophisticated division of labour prevailing in the EU. The illusion is to suppose that these changes can be achieved only by rapid entry into the EU.

The argument presented in the UN/ECE 1996 Economic Bulletin for Europe is that many of the advantages of membership - access to the single market and economies of scale, direct investment by western companies, credibility for domestic policies, etc. - can be achieved before entry if the expectations of eventual accession are firmly based, not only in the political commitments of the parties concerned but also in coherent and articulated strategies which will raise confidence that the conditions for membership will be met. Also, strategies that support the restructuring of the eastern economies and help to reduce the gap in income levels between existing members and the candidates before entry will help to lower both the budgetary and the adjustment costs of entry.

The case for a detailed pre-accession strategy, as sketched in the Bulletin, might also appeal to the current members of the EU who obviously need time to resolve the issues before the IGC96 and reassurance that the very idea of Europe as an integrated economic and, increasingly, political space will not be lost or abandoned in the process of enlargement. The ambitions of the existing members of the Union cannot be ignored by the transition economies, however keen they may be to join as quickly as possible; but neither can the Union ignore the fears of many in the transition economies at being left on the European "doorstep". If each side can appreciate the interests and anxieties of the other a realistic compromise on approaching enlargement must be possible, and the strategy suggested here could contribute towards the process of creating the necessary institutions and other conditions required for full membership.

In the above discussion the ambition of the European Union for deeper integration among themselves has been taken as given; and consideration of the details of the discussions at the IGC96 and the probability of a "successful" outcome by mid-1997 has been avoided in order to concentrate on the main proposal. But it is obvious that not all members of the Union share the same integration objectives and this in turn is complicating the work of the IGC96. If the outcome of the IGC96 is less than successful, in the sense of failing to resolve those problems whose solution is regarded by many existing members as a necessary condition for enlargement, then the negotiations for the accession of new members are unlikely to start within the scheduled six months following the close of the Conference. In such circumstances, the existence of a detailed and coherent strategy to help the transition economies forge ahead with meeting the requirements for membership could play an important role in mitigating the inevitable disappointment and negative effects on expectations that would ensue from any postponement of the negotiations.

One of the crucial functions of such a strategy is to maintain support for the ultimate objective of an enlarged European economic and political space while conveying a realistic assessment of the time required to bring about effective institutional and structural change. Ever since the transition process began in 1989, policy discussions have been excessively preoccupied with how quickly rather than how effectively transformations can be carried out concludes Paul Rayment.