By Martin Banks - 31st March 2009
“All this is no mean achievement
Olli Rehn
Fears that a 27-member EU would end in "gridlock" have proved unfounded, according to EU enlargement commissioner Olli Rehn.
Speaking in Brussels on Tuesday, Rehn also appealed for economic support for struggling economies in east and central Europe.
Earlier this month the Hungarian prime minister, Ferenc Gyurcsány, invited ridicule across the EU by warning of a new iron curtain dividing Europe and calling for the EU to provide €180bn of funding for eastern Europe.
At their recent EU summit in Brussels, European leaders responded by agreeing to increase funding for balance of payments support available for mainly eastern European member states from €25bn to €50bn.
Aware that a banking crash and public finances collapse in countries such as Hungary, Romania or the Baltic states - all new EU members - could trigger a much worse banking crisis in western Europe, EU leaders said the new funding would support countries in distress.
The EU already has a crisis fund of €25bn and has so far disbursed about €10bn to Hungary and Latvia, the two countries in worst economic shape in central Europe. Romania is also currently negotiating help from the fund.
Addressing a European Policy Centre event, Rehn added to the debate by insisting, "There is good reason why we must support the economies of central and eastern Europe at the current time. After all, we are all in the same boat."
"The success - or failure - of these struggling economies will have a direct impact on the rest of us in the EU."
Rehn pointed out that on 1 May, the EU will mark the fifth anniversary of its eastern expansion.
The "balance sheet" showed that accepting countries like Poland and Czech Republic into the EU had proved an "anchor of stability and democracy" in the region.
"It has also enabled the EU to increase its weight in the world in areas like international trade and climate change," he said.
"All this is no mean achievement."
Enlargement had also generated economic benefits, he said, pointing out that trade between the 'old' and 'new' member states had risen three-fold to some €500bn up to 2007. There had also been a five-fold increase in trade among the 'new' member states themselves, he said.
"From 2004 until the current crisis, there was also a robust 1.5 per cent growth in employment in the 'new' member states."
The Finnish official added, "There were fears that expanding the EU to 27 members would lead to gridlock but such fears have proved unfounded."
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