Professional Documents
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The enlargement of EU by
acceeding new countries.
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International Economic Relations
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Marta Fernandes :: Vítor Santos
University of Oradea
Erasmus Students from Portugal
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2
Introduction .................................................................................................................. 3
History of the European Union and its enlargement ................................................... 4
Founding countries: ............................................................................................... 4
1st Enlargement: ................................................................................................... 5
2nd Enlargement: ................................................................................................. 6
3rd Enlargement: .................................................................................................. 6
Fall of Berlin Wall ................................................................................................. 7
5th Enlargement: .................................................................................................. 8
6th Enlargement: .................................................................................................. 9
7th Enlargement: ................................................................................................ 10
Benefits ...................................................................................................................... 11
Impact of enlargement for Portugal .......................................................................... 12
Advantages ......................................................................................................... 12
Difficulties ........................................................................................................... 12
Action needed .................................................................................................... 12
Impact of enlargement for Romania and Bulgaria ..................................................... 13
Membership Criteria .................................................................................................. 14
Conclusion .................................................................................................................. 15
Bibliography ............................................................................................................... 16
FOUNDING COUNTRIES
Having regard to the success of the treated coal and steel, the six countries have
continued their cooperation in extending this to other economic sectors, by signing the
Treaty of Rome (March 25, 1957), thus creating the European Economic Community
(EEC) or "common market", whose aim is the free movement of persons, goods and
services between Member States.
1ST ENLARGEMENT:
Denmark, Ireland, UK
The fall of the Salazar regime in Portugal in 1974 and the death of General Franco in
Spain in 1975 put an end to the latest right-wing dictatorships in Europe. The two
countries are committed to the establishment of democratic governments, which is an
important step towards membership.
2ND ENLARGEMENT:
Greece
The January 1, 1986, Spain and Portugal join the EEC, which increases to 12 the
number of its members.
3RD ENLARGEMENT:
Spain, Portugal
The February 7, 1992 is signed the Treaty on European Union at Maastricht. The
EEC exceeds a major step by establishing clear rules for the future single currency,
foreign policy and security and cooperation in justice and home affairs. The "European
Community" is formally replaced by "European Union".
JANUARY 1, 1993
Creating a single market and its four freedoms becomes a reality from January 1,
1993, where they move freely to the goods, services, people and capital.
5TH ENLARGEMENT:
The Schengen Agreement came into force on 26 March 1995, seven Member States:
Belgium, France, Luxembourg, the Netherlands and Portugal. Travelers of all
nationalities, can travel to these countries without identity checks at borders. Other
countries later joined the Schengen area.
The signing of the Treaty of Amsterdam (June 17, 1997) is based on achievement of
the Maastricht Treaty. Includes provisions to reform the European institutions to give
more weight to Europe in the world and devote more resources to employment and the
rights of citizens.
EU leaders agree to start accession negotiations with 10 countries of Central and
Eastern Europe: Bulgaria, Slovakia, Slovenia, Estonia, Hungary, Latvia, Lithuania,
Poland, Czech Republic and Romania. Addition to these countries, the Mediterranean
islands of Cyprus and Malta. In 2000, the Treaty of Nice opened the way for
enlargement, to overhaul the EU rules on voting.
The January 1, 1999, eleven countries (that Greece would join in 2001) adopting the
euro only for their commercial and financial transactions. The coins and banknotes will
be introduced later. The eurozone countries are: Austria, Belgium, Finland, France,
Greece, Ireland, Italy, Luxembourg, the Netherlands and Portugal.
6TH ENLARGEMENT:
Potential countries: Albania, Bosnia and Herzegovina, Kosovo, under United Nations auspices
in accordance with Resolution 1244 the Security Council, Montenegro, Serbia, Iceland
BENEFITS
New opportunities for business and for economic and financial groups;
Export and investment opportunities in new markets;
The fact that these countries were emerging economies will enhance the
attractive conditions for Portuguese investment in these countries;
Free movement of workers - flows;
Prospects for a major increase in trade in products and services.
Low wages are our main competitive factor with the disadvantage that in
Portugal the manpower is not as high educational qualifications;
Allowed the strengthening of democracy and political stability and society in
general.
DIFFICULTIES
Migratory movements;
Increased competition in the economy domestic and foreign markets,
including competition with labor-national work;
Relocation of enterprises and investment (including foreign direct
investment);
Loss of power and political influence in the European Union;
Worsening of the position;
Increase in commercial competition;
Divert investment flows;
Reduction in the intensity of Community grants;
Potential effects on competitiveness and competition between companies;
Fears about a transfer of existing EU financial aid to other countries and
regions;
Movement of foreign direct investment and multinational enterprises.
ACTION NEEDED
Entrepreneurs with initiative and support the internationalization
Taking all the benefits of the enlargement of the market
Maintaining the connection with a major investment in the candidate countries,
notably in infrastructure (environment and transport as priority areas) and
technical assistance;
Enjoy the whole experience that Portugal is in services (banking, insurance) are
important for these countries
Modernize and improve the competitiveness of productive sectors, increasing
the export capacity.
Source: IAPMEI
http://www.dre.pt/ue/ue_desc.html
http://europa.eu/abc/history/animated_map/index_pt.htm
http://ec.europa.eu/enlargement/countries/index_pt.htm
http://www.iapmei.pt/iapmei-art-03.php?id=1000
http://ec.europa.eu/agenda2000/overview/pt/agenda.htm
www.ugt.pt/ue/estudo2.doc