East EU-enlargement kicks EU growth

The EU two years after enlargement: Economic success or political failure?

By Katinka Barysch, chief economist, Centre for European Reform

The Eastward EU enlargement is changing the EU economy in a profound way. Enlargement has allowed the emergence of a new, pan-European division of labour. This, in turn, will help the EU economy to stay competitive in a globalised world economy.

Economically, eastward enlargement may be exactly what the EU needs to increase its sluggish growth rates. The new members are too small to act as the economic engine of a sluggish eurozone. However, the availability of a large pool of low-cost, highly skilled workers at their doorstep has helped West European companies to better cope with globalisation. And it has put pressure on governments in the old EU to make their labour markets more flexible
and their business environments more attractive.

The report: Two years after enlargement

Also read the EU report:
Enlargement, two years on: all win as new Member States get richer