European Union enlargement.(Communique)

On May 1st, 2004 the European Union welcomed 10 new countries. This historic integration marks the reunification of Western and Eastern Europe and an extension of the EU towards Southern Europe. The countries are: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. The EU becomes the world largest trading block: almost half a billion citizens, accounting for one fifth of world trade income. After May 1st, the EU is the largest barrier-free market in the world, bigger than the U.S., Canada and Mexico together. This will be a market open to the rest of the world, leading to an overall reduction in border protection from 9 to 4 percent.

The World Bank states that as their status of "economies in transition" slowly fades into history, social and economic transformations in these countries will continue for the foreseeable future until they catch up to the standards of their wealthier peers. "The new members have pursued an array of difficult reforms, ranging from the modernization of tax and financial systems to reform of pensions, health, education, infrastructure and energy. Their experience is directly relevant for the existing member states which are grappling with similar challenges as Europe tries to move closer to the Lisbon 2010 targets to foster dynamic, competitive societies," said ...