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etable seed, seed potatoes, peas, and poultry.76

my grew by 4.4 percent, whereas the German

economy grew at only 0.2 percent.82 Such slow

One EU regulation even aims to increase the

production of thyme honey on small Aegean

growth in the EU raises questions about the

islands by subsidizing beekeepers who have at

appropriateness of the European economic

least 10 fixed hives registered with the compe-

model for future prosperity in CEE.

tent authority.77

Most EU economies are beset by deep

structural problems, including rigid labor

Stringent EU agricultural and food safety

markets, restrictive regulations, expensive

policies will also make the CEECs less com-

petitive.78 To ensure compliance, the EU

environmental and safety standards, high

taxes, and large unfunded liabilities. As World

Commission has voted itself extraordinary

Bank data show, between 1992 and 2001 the

powers to "protect" the internal market of

German economy grew on average by 1.45 per-

the current members against CEE agricultur-

cent per year and the French economy by 1.88

al produce for three years after accession.

percent. The Irish economy, which is more

Ostensibly, those powers are intended to

akin to the American model, grew by 7.65 per-

guarantee the safety of CEE exports, but

cent during that same period and the British

some observers justifiably fear that they may

turn out to be protectionist measures.79

economy by 2.58 percent. Between 1992 and

Slow growth in

2001 the U.S. economy experienced an average

Should the EU judge certain agricultural

the EU raises

growth of 3.46 percent per year.83

products "unsafe," they will be banned.

Although not aimed at CEE agricultural

When it comes to employment, the EU

questions about

producers, the EU has used "safety concerns" to

also lags behind. Over the past decade, the

the appropriate-

ban the imports of American genetically modi-

rate of unemployment in Germany and

ness of the

fied (GM) foods. GM foods have been con-

France has been hovering around 10 percent,

sumed in the United States for more than a

which is roughly double that of the United

European eco-

decade. No adverse effects have been observed.

States. About 40 percent of the unemployed

nomic model for

Yet despite the EU's inability to offer evidence of

in Europe have been without jobs for more

the harmfulness of GM foods, the EU contin-

than a year. A comparable figure for the

future prosperity

ues to discriminate against U.S. imports on

United States is only 6 percent. Since 1970

in CEE.

health and safety grounds. Moreover, the EU

the U.S. economy has created 57 million new

continues to pressure client sub-Saharan coun-

jobs. The EU, despite having a larger popula-

tries to refuse American food aid, despite the

tion, has not created a single net new job in

fact that millions of people throughout that

the private sector since 1970. The only

region starve. As James Glassman of the

increase in employment that the EU experi-

enced was in the government sector.84

American Enterprise Institute points out, the

EU's attitude has less to do with worries about

Europe has also lagged in productivity.

safety of GM foods than with the competition

American workers, for example, generate 27

that more efficient U.S. farmers pose to their

cents more output per dollar of input than

European counterparts.80

European workers do. In France and Belgium,

employees are, in addition to their vacations,

entitled to at least 26 paid national holidays.

The European Economy:

The average German is paid for 14.5 months

of work per year but works only 9.5 months.85

Warning Signs for the

Whereas before they were roughly equal, today

CEECs

European GDP per capita is less than two-

thirds of that of the United States. The United

With average per capita income ranging

States today produces 30 percent of the

from $10,070 in Slovenia to $3,700 in

world's GDP. That is 8 percent more than it

Slovakia, the standard of living in most

CEECs is still low.81 But the CEECs have been

produced in the late 1980s.86 Slow growth,

narrowing the gap. In 2002 the Slovak econo-

generous social provisions, and high unem-

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