Progress Toward the Unification of Europe Book

The upcoming enlargement of the European Union by ten countries of Central and Eastern Europe (CEEC) and the Baltics as well as by Cyprus and Malta, with Turkey also having been given an opening for eventual EU membership, is of great historical significance. In addition to the question of what will it take for EU candidate countries to get ready for EU accession is the question of whether the EU is itself ready to receive the EU candidate countries. " These questions are addressed in this report. Section 2 discusses the progress made by the CEECs in their overlapping transition and EU accession processes. The process of EU accession is helping the economic transition of these countries, but only if they have been undertaking the necessary economic, political, and institutional reforms at the same time. Section 3 discusses the per capita income distance between the CEECs and the EU, and what it takes for real convergence. Section 4 discusses some key policy issues facing the CEECs for successful integration. These are: 1) addressing the fiscal challenge, taking into account hidden deficits and contingent liabilities; 2) addressing the challenge of global financial integration; 3) strengthening administrative capacity; and 4) raising the living standards for groups at risk. Section 5 discusses some key challenges facing the EU for facilitating a successful integration. Section 6 highlights the role of internal and external partners in the accession process.