Summer 1996

The idea of European Integration is very old and has its roots in medieval Europe when the idea of "European equilibrium" emerged in response to foreign invaders. This vision, for a united Europe, however, was first implemented after the division of the world after World War II into two ideological fields: the Communist and the capitalist. The role of the EEC was to maintain the balance in Europe and to stop the expansion of Communism to the West. However, the fall of Communism in Eastern Europe enabled the EU to consider making the Eastern European countries part of a unified Europe.

Eastern Europe: A Political and Economic Burden

The European Commission, the executive organ of the EU, and the governments of the 15 members are cautiously considering expanding the Union to the East. Political instability, lack of legal structures, and the collapsing economies of the former countries of the Eastern block are all valid reasons for excluding Eastern Europe from the EU. The Union cannot tolerate the burden of the declining economies of the Eastern European countries. Both monetary and economic unification would be harmed if the developing economies of East Europe became part of the integrated Western economies of the continent. In addition, the political and economic problems in the Eastern European countries could lead to a surge of nationalism and to war (as it did in the former Yugoslavia) which would restrict free trade and other cooperation between the nations of Europe.

The leaders of the Union envision an expanded EU but are reluctant to admit countries with such political and economic problems. The EU is not eager to replicate "the EU experiment" of German unification, which severely hurt the economies of

the Union. Right now any admission of a former Eastern block country to the EU would have even more detrimental economic effects for the EU. Poland, Hungary, Slovakia, Russia and other eastern European countries do not even have stable democratic political institutions. In some of these countries, such as Romania, the Communists have even regained power. Understandably, the Union is not willing and cannot afford new problems. The continuing recession in the countries have forced the EU into a precarious position, in which any risky step could threaten the stability of the European institution. The goals of low deficits, low unemployment and inflation rates for the members of the Union, set in the 1993 conference of Maastrict will not be achieved with a further expansion. Any immediate admission of the ex-communist countries will make the "European experiment" fail.

A United Front

Notwithstanding the drawbacks of admitting Eastern block, the EU should bear in mind that governments and people of the Eastern European countries desperately seek participation in the EU after 40 years of isolation. Admission to the EU has become somewhat of a dream for the Eastern Europeans. In April 1994, when Hungary and Poland applied for membership into the EU, the Eastern European nations came closer to fulfilling that dream. EU reacted positively and made what are called "connection agreements," the preliminary agreements for admission, with almost all the former Eastern block countries.

Two months later, the European Council (the Council made up of the Prime Ministers or Presidents of the countries-members) created a complex framework for discussion in issues of common interest between the EU and the Eastern European countries. This framework, which is called the "structured relationship," provided for discussion of EU policies, in such areas as foreign affairs, security and internal issues such as justice in the Eastern European countries. Such programs undoubtedly foster the expansion of the EU.

Promises and discussion do not, however, lead to significant progress in the matters of EU-Eastern European relations when not followed by economic assistance. With this understanding, the Union granted 16 billion ECU (the currency of the European Union) to the former Communist countries and instituted several programs such as PHARE and TACIS for technical assistance. The EU has also assisted in the privatization of companies, and the development of the private sector. In addition, the Union established the European Bank of Reconstruction and Development in 1990 in order to ease the transition of the former Communist economies of Europe to capitalism.

Despite these efforts to unite with Eastern Europe, the EU is still severely criticized for not doing enough for the area. EU critics point out the failure of the EU to solve the crisis in Yugoslavia and to help Eastern Europe overcome its economic problems. Political analysts believe that the EU often sabotages the exports of Eastern European countries and is hesitant to expand to the East because it is afraid of the potential flow of immigrants from Eastern Europe.

In 1989, when a Russian journalist was asked to name the borders of the "common European home," he answered that Siberia is obviously included since it is as Russian as Russia itself. He was right. Likewise, the former Communist countries of Europe should be admitted to the EU. The West does not have a choice. EU members want to expand their influence in the globe and the only way to achieve that is to include everyone. Eastern Europe is no longer an enemy of the West. European countries needs to be integrated in the "Common European Market." Moreover, it is in the EU’s interest to become a strong political institution. A stronger European Union will be achieved only when it is really a union of all the Europeans, when Europeans start working together with a common goal: the well-being of all Europeans.

Mr. Katsarakis, SM'99, is an economics major at Yale College.