Enlargement Ten Years on: New Europe’s Contribution to Single Market
Enlargement Ten Years on: New Europe’s Contribution to Single Market

Author(s): Kryštof Kruliš
Subject(s): Supranational / Global Economy, EU-Approach / EU-Accession / EU-Development, Financial Markets
Published by: AMO – Asociace pro mezinárodní otázky
Keywords: FDI inflow; EU internal market; Central and Eastern Europe; state aid prohibition; global recession 2009; migration inflows; EU enlargement 2004; labour market restrictions; wage level; welfare system sustainability;
Summary/Abstract: The mere prospect of the future membership of the Central and Eastern European countries in the EU internal market significantly increased the much-needed FDI inflow into this territory and this trend continued until the global recession of 2009. The EU internal market membership helped to reduce the risk premiums of investments in this region. The important condition for the enhanced FDI inflow consisted also in fact that the internal market rules on the prohibition of state aid did not prevent the governments in this region from further attracting the FDI inflow with generous incentives schemes even after the accession to the EU. This was due to the temporary derogations in the Accession Treaties and the subsequent lenient application of the exemptions from the state aid prohibition.

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