Argument: EU labor regulations will reduce productivity of new entrants

Issue Report: European Union Expansion


Marian L. Tupy. “EU Enlargement: Costs, Benefits, and Strategies for Central and Eastern European Countries”. Policy Analysis. 18 Sept. 2002 – British commentator John O’Sullivan describes the disappointing nature of the accession in the following way: “Under the EU accession package, the 10 new members are supposed to receive the headline figure of $41 billion in adjustment subsidies. But when various dues and unforeseen items have been deducted, the actual amount they will get is a mere $10.6 billion over the next four years [2003–06]. Their poor but rising economies will have to absorb job-killing regulations designed for much richer societies. And to add insult to injury, their citizens will not be allowed to migrate to existing EU members until seven years after enlargement in May 2004. All in all, the net economic benefits to the new members may be small to non-existent.”