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Poland and the EU



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Code : ITF0025

Year :
2004

Industry :General Business

Region : :Poland Europe

Teaching Note: Not Available

Structured Assignment : Not Available

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Introduction: On May 1st 2004, 10 countries joined the EU, and Poland was the largest amongst these countries.As ofMay 2004, Poland had a population of 38.6 million, which was more than half the population of the newmember countries; and a Gross Domestic Product (GDP) of $230 billion, which accounted for 41%of the total GDP of the newmembers (Annexure I).3 With the enlargement, EU emerged as a market of nearly 500 million people.4 The EU as a single market also accounted for the largest combined GDP. The newmembers expect that the EUmembershipwould help then expand theirmarkets, draw higher foreign investment and result in higher incomes. Economists predict that free access to the single EU market could increase Polandís trade by up to 4% a year.5 While the old member countriesí economies are stagnating, the Polish economy is expected to experience tremendous growth aided by the inflow of funds as a direct result of joining the EU. There is a growing expectation amongst the economists that Poland and the other fast growing new members might revitalize the existing EU economies. The existing members would benefit froma larger market for their products and an increase in investment opportunities.

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