Political and Economic Perspectives of the Eastern Enlargement of the EU

The extent of the economic benefits brought about by the EU's eastern enlargement will depend crucially on political factors: the kinds of institutional reform the EU has instituted up to that time, the balancing of conflicting interests between those who gain from the enlargement and those who lose, the adaptability of the social structures in the countries aspiring to membership, and the intensification of contacts in the information society. Moreover, it is an open question which road the transformation countries would take if accession to the EU were not accomplished within a reasonable time period. Austria, as the immediate neighbor of these countries, can expect to benefit from the utilization of a larger economic potential, but must also face greater adjustment problems, especially in the border regions. Some of the most difficult problems which are expected to arise during the transition period concern the labor market. An increase in financial transfers to the prospective member countries could be at odds with Austria's desire to reduce its net payments to the EU.