meant to offset some of the negative aspects of
have the necessary economic flexibility. "By
accession, has not met the CEEC's expectations.
adopting an array of incomprehensible [EU]
That is not to suggest that there should be
laws and regulations . . . we have permanently
foreclosed that option."7
more aid. Indeed, there is ample evidence that
aid does more harm than good.10 Rather, the
British commentator John O'Sullivan
describes the disappointing nature of the acces-
point here is that the citizens of CEE were mis-
sion in the following way: "Under the EU acces-
led about the terms of accession. Thus, public
sion package, the 10 new members are supposed
opinion in CEE grew more critical of the EU as
to receive the headline figure of $41 billion in
the date of the accession neared. For example,
adjustment subsidies. But when various dues and
the EU Commission's own poll in 2002 found
unforeseen items have been deducted, the actual
that only 32 percent of Estonians, 35 percent of
amount they will get is a mere $10.6 billion over
Latvians, 43 percent of Slovenes and Czechs,
the next four years [200306]. Their poor but ris-
and 48 percent of Lithuanians thought that
joining the EU was "a good thing."11
ing economies will have to absorb job-killing reg-
ulations designed for much richer societies. And
Despite that, few observers believe that
to add insult to injury, their citizens will not be
any of the national referenda, which will be
allowed to migrate to existing EU members until
held throughout the CEE prior to accession,
The EU has
seven years after enlargement in May 2004. All in
will result in rejection of enlargement. Even
grown into a
all, the net economic benefits to the new mem-
the opponents of the European superstate,
bers may be small to non-existent."8
such as Czech president Václav Klaus, con-
huge trading bloc
sider the enlargement a fait accompli.12 The
O'Sullivan's commentary sums up the dis-
that has the
illusionment with EU accession that has
main reason for that type of fatalism is the
power asymmet-
spread throughout CEE. For more than a
fact that, although being a part of the EU
decade, the governing elites in CEE have been
may result in suboptimal growth, remaining
rically to define
selling EU accession as unambiguously bene-
outside the EU could be much worse.
the terms of trade
ficial. But as the terms of the accession that
Over the past 50 years, the EU has grown
the CEECs negotiated have become public, the
into a huge trading bloc that has the power
relations with
citizens of CEE have recoiled at the prospect of
asymmetrically to define the terms of trade
non-EU coun-
having their tax burdens increased, their soci-
relations with non-EU countries. The EU
tries.
eties micromanaged, and their economic free-
now has the power to sanction small coun-
dom restrained by ludicrously detailed and
tries that refuse EU dicta or try to hold out
complicated EU regulations.
for more EU concessions. No example
Furthermore, workers from CEE will ini-
demonstrates this better than the EU's recent
tially be prevented from seeking jobs in the
economic blackmail of Norway.
EU. The extent of that ban varies, but the two
Norway, which is not part of the EU but
countries that historically absorbed most
does have a free-trade agreement with it, used
CEE workers, Austria and Germany, will be
differentiated tax rates for employers in order to
"protected" from CEE labor immigration for
benefit companies based in its northern, sparse-
up to seven years.9 The ban will compromise
ly populated region.13 The EU was concerned
one of the EU's most fundamental princi-
that those lower tax rates attracted investment
ples--freedom of movement of labor--and
away from the EU. Faced with possible financial
thus condemn the CEECs to a second-class
penalties and economic sanctions, the
membership status for the foreseeable
Norwegian government backed down. Instead
future. On a practical level too, the CEECs
of fighting the EU, Norway accepted the possi-
ble loss of 30,000 jobs in the north.14
will be prevented from softening the eco-
nomic impact of EU accession by the export
The European business community is
of a competitive labor force.
increasingly disaffected as well. In a recent sur-
Moreover, the size of the intergovernmental
vey commissioned by the EU Commission, 65
financial transfers from west to east, which were
percent of European businesses and organiza-
3