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5/13/14

Eastern Europe: Where Now After Ten Years Of Enlargement? - by Laszlo Andor:

The ‘Eastern enlargement’ in May 2004 opened the EU’s doors to ten countries. Of these, the four Visegrád states, the three Baltic countries and a former Yugoslav state had at that time completed their 15-year transition towards a market economy. In the first half of the 1990s these countries’ income, measured in terms of GDP, had fallen by 20 to 30 percent. Poland was the first country to return to the same income levels as before the transition, Hungary was next in 2000, and the other countries followed later.

The experience of the ‘great transformation’ which began in Central-Eastern Europe a quarter of a century ago played a key role in determining what the citizens of the new Member States expected from their accession to the EU: stable and sustainable growth. If we look at the decade since 2004, the region really seems to have been catching up with Western Europe in terms of both employment and economic performance.

However, the financial and economic crisis which started in 2008 disrupted the previous trend of convergence to some extent. Greater differences between individual countries’ performances also emerged. Poland and Slovakia, for example, generally continued to catch up, while Hungary fell behind on many growth, employment and social indicators.

Read more: Laszlo Andor: Where Now After Ten Years Of Enlargement?

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