The new year marked an expansion of the EU on two fronts: Slovenia became the first Eastern European
member to take the Euro currency, and Bulgaria and Romania became EU member states. The eight ex-communist states that joined in 2004—Poland, Hungary, Slovakia, etc—have done well, and that success was crucial for Bulgaria and Romania’s membership. But the problems with the addition of these two new members are multifold, and the challenges ahead are tougher than anything the EU has faced before. (Graphic from CBC.)
1. Economics. Bulgaria’s GDP per capita in 2005 was $3,480, and Romania’s $4,490. The average for the eight 2004 entrants was $9,240, and the EU-wide average is $29,330. These two 2007 members are poorer and weaker than then 2004 members, so the issues are not the same.
2. Politics. Both countries are backward in their politics and infrastructure. Corruption is entrenched in many levels of government administration. Bulgaria faces the ipso facto rule of organized crime in many areas of the country. In Romania, the least-trusted public institution in is the courts.
3. Culture. Romania is in some ways a Latin outpost in a Slavic land, with a poor opinion of Russia. Bulgaria’s language is as close to Russian as Spanish is to Italian, cultural ties with Russia are strong, and many Bulgarians today believe communist rule modernized the country. This brings us to…
4. National Security. Both these countries will alter how Europe deals with the world. As noted above, Bulgaria is close to Russia, but Romania is distancing itself from its eastern neighbor and is strengthening ties with the US. Both countries also bring perils to the EU, as they have leaky borders and poorly regulated immigration.
What does this mean for the EU’s future? The challenges are clear, the opportunities—a larger labor supply and more long-term growth potential—less apparent and immediately beneficial. Both countries now face intense pressure to meet Brussels standards. Criticism and sanctions are probably the rule for the future than congratulations and rewards. How the EU copes with these newest members will shape how candidates Croatia, Turkey, and others could enter the EU, and how the member states will respond.