What will joining the EU mean for the new eastern member states and their ecomies? This text offers a detailed study of the macroecomic and structural adjustment burden. It envisages a real currency appreciation stemming from price convergence, capital inflows and weak structural change. The widespread belief that an Eastern enlargement of the Union would be overwhelmingly to the detriment of the present EU (budgetary costs, locational decisions, trade deficits) is rejected. The authors discuss the lack of competitiveness of Eastern countries and their need for structural adjustments (in the financial sector, in agriculture, and in manufacturing) in order for them to survive and thrive in their new ecomic environment.
KLAUS FROHBERG Executive Director of the Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle/Saale, Germany MONIKA HARTMANN Head of the Division of Agricultural Markets, Marketing and World Agricultural Trade at the Institute of Agricultural Development in Central And Eastern Europe (IAMO) in Halle/Saale, Germany JENS HOLSCHER DAAD Senior Research Fellow and Co-ordinator of Economic Research, Institute for German Studies of the University of Birmingham KAZIMIERZ LASKI Professor Emeritus of Economics at the University of Linz, Austria CLAUDIA LOHNIG Research Associate at the Leipzig Graduate School of Management LUCJAN ORLOWSKI Professor of Economics and International Finance at Sacred Heart University in Fairfield WITOLD ORLOWSKI Deputy Director of the Research Institute of the Central Statistical Office in Warsaw LEON PODKAMINER Vienna Institute for Comparative Economic Studies (WIIW) JOHANNES STEPHAN Research Fellow at the Institute for Economic Research Halle (IWH)