Political and Economic Perspectives of the EU Eastern Enlargement

The eastern enlargement of the European Union provides Austria with the opportunity to expand to the fullest its political and economic relations with neighbouring countries. For Austria's economy, the enlargement would open new avenues of economic development, but it would impose also greater adjustment costs than for the EU countries as a whole. However, the degree to which the economic potential will be reached depends on political factors, in particular on the reform of the EU institutions and on the specific conditions attached to membership. Furthermore, it is difficult to predict how the enlargement to the east will play out because it is unclear how the economies of transition will develop if they cannot join the Union within a reasonable time frame.