1. Introduction
For many centuries Europe was torn by the antagonism of power. During the world wars a united Europe seemed like an inconceivable illusion. But utopia became reality. Now, 15 years after the fall of the Berliner wall Eastern countries are joining the European Union. The EU enlargement on 1 May could be the beginning of a modern fairy tale.
On this day the European Union opened its doors to another 75 million people from the 10 new member states of southern Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. Never before in its long history has Europe been more united than nowadays. (Warren, 2004) With a total population of approximately 450 million people the EU has created the world`s largest single market which will have a enormous impact on the world market as well as on the markets of the old member states. (MDR, 2004)
The EU enlargement obviously impacts the established political order of the EU, however it is now - despite doubtlessly existent risks - broadly seen as a great chance in a political, economical and also very much in a cultural way. There has been a big discussion involving all different levels of society and politics about where this is going - and where it will all end. (Wallendorf, 2004)
This work will focus on Germany as an old member of the European Union and examine the extent to which the benefits of the 2004 enlargement outweigh the disadvantages. Due to the word limitation the major issues will be mentioned but the attention will focus more on the implication for the German economy, although the issues sometimes interact each other it is not always possible to separate them. The agriculture sector will be left out of consideration. The pictures used in this report are taken from the official homepage of the German Government and the European Commission. [...]
Table of Contents
1. Introduction
2. Political implications
3. Security implications
4. Environmental implications
5. Economical implications
6. Conclusion
Objectives and Key Themes
This work examines the impact of the 2004 European Union enlargement on Germany, specifically evaluating whether the economic and political benefits outweigh the potential disadvantages for the German state.
- The political transformation and institutional restructuring of the EU post-enlargement.
- Security challenges and cooperation efforts regarding cross-border crime.
- Environmental policy shifts and the harmonization of ecological standards.
- Economic consequences, including the "Go east" trend of German businesses and labor market pressures.
Excerpt from the Book
5. Economic implications
A survey done in April 2004 by TNS Infratest shows that 73 per cent of 1000 questioned people expect risks for workstations in Germany as a result of the EU enlargement. The same poll shows that 60 per cent do not see any advantage for the German economy. (Der Spiegel, 2004)
This result must be seen in connection with the competitive position that the new member states have. Countries like the Czech Republic, Hungary, Poland and Slovenia became big competitors to the German market during the last couple of years as many German companies moved eastwards. The car manufacturing industry provides good examples for this “Go east” trend. The Adam Opel AG opened a factory in Gliwice (Poland), Volkswagen went with an assembly subsidiary to Slovakia and Audi to Hungary. But it is not only the production which leaves the country. Nowadays the companies also shift service to the east countries like the German Esso with its accounting department from Hamburg to Prague. The DHL (packet service of the German Post) will also close its whole IT central department in Germany and move to the Czech capital. (Der Spiegel, 2004)
Summary of Chapters
1. Introduction: This chapter provides an overview of the historical context of EU enlargement and outlines the scope of the study regarding its impact on Germany.
2. Political implications: This section discusses the necessity of institutional reform, the "double majority" voting principle, and the role of new member states in ensuring European stability.
3. Security implications: This chapter analyzes the security risks associated with open borders and the potential for improved cooperation between police forces to combat organized crime.
4. Environmental implications: This chapter addresses the differences in ecological standards between Germany and new member states and the potential for environmental policy harmonization.
5. Economical implications: This section details the risks and opportunities for the German economy, focusing on corporate relocation, wage competition, and foreign direct investment.
6. Conclusion: The final chapter summarizes the balanced view of the enlargement's impacts and emphasizes the necessity of European unity for long-term peace and prosperity.
Keywords
EU Enlargement, Germany, Economic Impact, Political Stability, Security, Labor Market, Foreign Direct Investment, Wage Competition, Environmental Standards, Institutional Reform, Single Market, Globalization.
Frequently Asked Questions
What is the core focus of this publication?
The publication focuses on the impact of the 2004 European Union enlargement specifically from the perspective of Germany, analyzing both the challenges and the opportunities presented by the entry of new member states.
What are the primary thematic areas covered?
The text covers political restructuring, internal security implications, environmental standard harmonization, and significant economic factors including industrial trends and labor market dynamics.
What is the main objective of the research?
The primary objective is to investigate the extent to which the benefits of the 2004 EU enlargement for Germany compensate for the identified disadvantages and risks.
Which methodology is employed in this work?
The work utilizes a qualitative approach, synthesizing official government reports, economic survey data from sources like the Ifo-Institut, and secondary academic and journalistic analysis.
What content is addressed in the main body?
The main body systematically reviews the political, security, environmental, and economic implications, providing concrete examples of German industries moving operations eastward.
Which keywords characterize the work?
Key terms include EU enlargement, Germany, economic impact, foreign direct investment, and labor market, reflecting the document's focus on macro-political and micro-economic consequences.
How does the author characterize the "Go east" trend in German business?
The author describes it as a response to competitive pressures, where companies shift production and services to Central and Eastern European countries to reduce costs and gain access to new markets.
What role does the "double majority" principle play in the analysis?
It is highlighted as a controversial but necessary institutional change intended to replace the "unanimity" principle, ensuring that decision-making remains effective within an enlarged 25-member EU.
- Quote paper
- Alexander Dürr (Author), 2004, Germany and the enlargement of the EU - An impact analysis, Munich, GRIN Verlag, https://www.grin.com/document/32824
