Contents of the volume

2018, Volume 71 - Issue 3

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 03 August 2018

THE FUTURE OF EUROPE: ECONOMIC AND SOCIAL PROSPECTS

Amedeo Amato

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IL FUTURO DELL'EUROPA: PROSPETTIVE ECONOMICHE E SOCIALI - WELCOME ADDRESS

Paolo Odone

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EUROPE'S FUTURE: ECONOMIC AND SOCIAL PROSPECTS

Angelo Bagnasco

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EUROPE'S FUTURE AT THE CROSSROADS: THE CHALLENGE OF IMMIGRATION

Stefano Stefanini

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WHY A EUROZONE COLLAPSE SHOULD NOT BE A SURPRISE: THE ROLE OF GERMANY AND GREECE

George Zestos, Morgan H. Simmons

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FINANCIAL CRISIS, BANKING SECTOR PERFORMANCE AND ECONOMIC GROWTH IN THE EUROPEAN UNION

Cândida Ferreira

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FIXING THE EUROZONE SETUP: ON VIABLE FORMS OF FISCAL UNION

Luca Gandullia, Franco Praussello

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AMONG THE CENTRAL AND EASTERN EUROPEAN COUNTRIES OF THE EUROPEAN UNION, WHO GAINED AND WHO LOST?

Miroslav N. Jovanovic, Jelena Damnjanovic, Jovan Njegic

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THE EXCHANGE RATE REGIME SWITCH AND CURRENT ACCOUNT IN GREECE, 1976-2014

Alexi Thompson, Henry Thompson

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Miroslav N. JOVANOVIC, Global Studies Institute, University of Geneva, Switzerland

Co-authors

Jelena DAMNJANOVIC, Novi Sad School of Business, Novi Sad, Serbia

Jovan NJEGIC, Novi Sad School of Business, Novi Sad, Serbia

Among the Central and Eastern European Countries of the European Union, who Gained and who Lost?

Pages

317-370

Abstract

The continuous enlargement of the European Union (EU) has been one of its greatest achievements and judging by the increasing number of EU member countries, one of its most successful policies. This primer considers the economic side of enlargement for the ‘new’ EU members, and provides data on the principal economic indicators of the period 2000-2016. The eastern enlargement of the EU has proven to be a hybrid bag of effects for the newly arrived countries. Data show that economic growth, the expansion of trade and an increase in foreign direct investment to the east of the EU denote obvious successes and gains for its new members. The cost of the structural transformation and modernization of these new EU countries is an amazing acceleration in the level of domestic and foreign debt that financed these successes. The new member countries have been ‘living on a credit card’. The danger is that this debt burden, unfavourable demographical developments, changes in the rates of interest, uncertainty about the future of the eurozone and of the EU, as well as the departure of Britain from the EU, may partially suffocate the newly acquired economic vigour seen in the EU’s east. It may also reduce the level of subsidies coming from the ‘old’ EU countries, assistance to which the new countries have become accustomed. In addition, these new countries might be treated like second-class EU members. The conclusion is that EU membership has not been a tide that lifted all boats, and that the great benefits of integration were oversold. There is still a quandary as to whether in the long run the new countries will have received the EU doughnut, or just its hole.

JEL classification

F13, F15, F50

Keywords

European Union, Eastern Enlargement, Central and Eastern Europe, Sanctions, Economic Transition, European Perspective, Eurozone

Index

  1. Introduction
  2. Economic effects
  3. Migration and demography
  4. Doughnut or a hole?
  5. Queues in the European Union: Britain on the way out, a few problematic others on their way in
  6. Conclusions

Bibliography

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