The EU, in the form of the European Economic Community, began in 1957 with six Member States: Belgium, France, Germany, Italy, Luxembourg and the Netherlands.

There have been four enlargements since then the first in 1973 to include Denmark, Ireland and the United Kingdom; the second in 1981 to include Greece; the third in 1986 involving Portugal and Spain, and the most recent in 1995 incorporating Austria, Finland and Sweden. The fifth wave of enlargement is scheduled for 2004, and is set to include ten countries: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

Steps on the road to enlargement

The Copenhagen European Council in 1993 legitimized Central and Eastern European applications for membership. It also defined three main criteria which applicants would have to meet before they could join the EC: the political criterion, covering the stability of institutions guaranteeing democracy and the rule of law; the economic criterion, relating to the existence of a functioning market economy; and the criterion concerning the ability to adopt the existing body of EC legislation, known as the acquis communautaire.

The most recent membership negotiations began with six countries in 1998 –Cyprus, the Czech Republic, Estonia, Hungary, Poland and Slovenia.  By 2000, negotiations had been extended to a further six countries -Latvia, Lithuania, Malta, Slovakia, Bulgaria and Romania.  The Copenhagen European Council of December 2002 resulted in the conclusion of accession negotiations with Cyprus,  the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia.  Treaties of Accession were signed in April 2003 and, following their ratification, enlargement will take place on 1 May 2004.

The Copenhagen Council also confirmed the objective of welcoming Bulgaria and Romania as members of the EU in 2007, provided that the pace of progress in maintained in line with the Commission ’s roadmaps.  With respect to Turkey, the Copenhagen Council concluded that if, on the basis of a report and a recommendation from the Commission, the European Council in December 2004 decides that Turkey fulfils the Copenhagen political criteria, accession negotiations will be opened with Turkey.

Commissioners from the new Member States will join the European Commission on 1 May 2004, and after the nomination of the next President of the Commission, the new Commission will take office on 1 November 2004.The new Member States will also participate fully in the next European Parliament elections and the next Intergovernmental Conference, both in 2004.

Effects of enlargement

Although the EU ’s population could rise by as much as 20% to over 450 million in 2004, its total GDP will grow by no more than 5%.  Notwithstanding the enormous efforts undertaken by these countries,  their integration into existing programs and structures will remain a delicate task.

An enlarged European Union with, in its initial phase at least, 75 million new citizens, will promote trade and economic activity and give fresh impetus to the growth and integration of the European economy as a whole.

Importantly, as part of the enlargement process, the new Member States are adopting the same single set of trade rules, single tariff schedule, and single set of administrative procedures as those already operated in the Single European Market by the current EU Member States and European Economic Area members (Norway, Iceland, and Liechtenstein).This greater transparency, consistency and openness will bring significant benefits to Australian and New Zealand companies wanting to trade and invest in these markets.  Rising standards of living in the new Member States, as well as harmonised rules in an extended single market, will present new opportunities, improving conditions for investment and trade and boosting prosperity.