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EU EXPANDS: Enlargement May Limit Development
By Stefania Bianchi

BRUSSELS, Apr 30 (IPS) - As ten new countries prepare to join the European Union Saturday, developing countries and aid agencies are assessing the effects that an enlarged Europe will have on the bloc's development policy.

Ten new member states (Cyprus, the Czech Republic, Estonia, Latvia, Lithuania, Malta, Hungary, Poland, Slovakia and Slovenia) will join the European Union (EU) May 1, and the debate on what effect this will have on the EU's development assistance is growing.

The European Commission, the EU executive, says that a Europe of 25 will not harm the bloc's development assistance, but many development agencies and officials are not so sure.

While many non-governmental organisations (NGOs) recognise the positive impact of the change, they also see the challenges.

Following enlargement, the EU population will increase by 76 million to 459 million to make it the world's largest integrated market, with a 20 percent share of the world's market volume.

The bloc will also account for approximately a quarter of global gross national income (GNI), and will have an almost 40 percent share of exports of goods and services.

Victor Bulmer-Thomas, Director of the Royal Institute of International Affairs in London says in a statement that "with respect to trade, the bigger single market in the EU could be good news for developing countries."

He says its effects on development cooperation are "unpredictable", but he does not see enlargement as a "major risk".

CONCORD, an umbrella network of more than 2,000 European development agencies, says that enlargement represents an "opportunity and a challenge", adding that a larger population must now be sensitised and mobilised in favour of development.

"The enlargement of the EU should represent an opportunity for reinforcing European development policies and the role of the EU as a global player, with a view to promoting human rights, democracy, the rule of law, and sustainable development throughout the world, and to eradicating poverty," CONCORD said in its report 'EU-Enlargement related challenges for development policies in the European Union' released February.

Until recently most of the accession countries have been receiving EU aid, but on joining the bloc they will be expected to implement their own development policy.

Aid agencies say that the total amount of aid channelled to the African, Caribbean and Pacific (ACP) group of countries should be increased proportionally to the arrival of the new member states, but are concerned that the new member states will not be able to meet such requirements as many currently set aside extremely low budgets for overseas development assistance (ODA).

Just three of the ten accession countries - Estonia, Malta and Poland - list poverty reduction as an objective for ODA.

"Current levels of ODA in accession countries are extremely low at between 0.01 and 0.13 percent of GNI, and there is little pressure being exerted on accession countries by the EU to raise these levels," the CONCORD report says.

Commission spokesperson for development Jean-Charles Ellermann- Kingombe said "the EU's development policy is also part of the acquis that has been accepted by the new member states." He said that "there is no reason why we should suddenly expect a change of our development policy after May 1."

As a result of enlargement "we will not only welcome ten new member states of the EU but also welcome ten new members of the international donor community," he told IPS. "This is very positive."

Many NGOs say the EU should work with accession countries to help them integrate the EU's acquis in the field of development, and to set up a "comprehensive and realistic agenda" so new member states can reach an ODA target of 0.33 percent of GNI by 2006.

But the European Commission remains optimistic. "Our first effort has to be to help the new member states put the basic structures required for the EU's development policy into place," says David Donoghue, Ireland's director- general for development cooperation. "It has to be a division of labour between the new member states and the old." Ireland holds presidency of the EU for the first half of this year.

Aid agencies predict that the accession countries will also favour the idea of humanitarian aid to neighbouring countries and the "near abroad".

Fraser Cameron from the Brussels-based European Policy Centre says the new member states will also wish to see more resources devoted to "wider Europe" and less to the developing world.

"They are likely to be less keen than existing members in maintaining a high level of funding for development aid and would prefer more funding to be spent on their immediate neighbourhood," he says in a paper, 'Enlargement - The Political Impact' published earlier this month.

But some NGOs say such a focus should not be a cause for concern. They say that the emphasis placed by accession countries on neighbouring eastern European and Central Asian countries should be welcomed by the NGO community and the EU as a valuable contribution towards poverty reduction.

The overall impact of EU enlargement on development assistance can only be assessed post-May 1, but NGOs say that work should be done to overcome the challenges.

"Ultimately the coming months will tell what will change with the arrival of the accession countries," CONCORD said. "However, only through trying to foresee the various possible futures could we commit ourselves to working towards that future which we consider to be our preferable future." (END/2004)

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