EU enlargement and its macroeconomic effects in Eastern Europe currencies, prices, investment and competitiveness ; [Workshop on Macroeconomic Problems of an EU enlargement to the East organised by the Institute for Economic Research Halle (IWH) in Halle

This book studies the macroeconomic and structural adjustment burdens for new Eastern European member countries of the European Union. The widespread belief that an Eastern enlargement of the EU would be overwhelmingly to the detriment of current members is rejected. The book consists of a wide range of theoretical approaches - from rather supply-side-oriented to more demand-side ones - to offer a range of perspectives on how enlargement could affect the transition economies and the European Union as a whole. What will joining the EU mean for the new eastern member states and their economies? This text offers a detailed study of the macroeconomic and structural adjustment burden. It envisages a real currency appreciation stemming from price convergence, capital inflows and weak structural change. The widespread belief that an Eastern enlargement of the Union would be overwhelmingly to the detriment of the present EU (budgetary costs, locational decisions, trade deficits) is rejected. The authors discuss the lack of competitiveness of Eastern countries and their need for structural adjustments (in the financial sector, in agriculture, and in manufacturing) in order for them to survive and thrive in their new economic environment The great debate about the European Unions's eastward enlargement has so far been marked by prejudiced view that is probably rooted in pressure for early accession exerted by the transition countries on the one hand, and in the EU's procrastination policy on the other.