Socioeconomic Impacts Of Expansion Of European Union

1.Pollack, Mark A. Policy-making in the European Union. Oxford University Press, USA, 2015.

2.Adams, Neil. Regional development and spatial planning in an enlarged European Union.

Routledge, 2016.

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Socioeconomic Impacts of Expansion of European Union

Summary

European Union was mainly formed to improve and enhance the economic performance of

its members. According to research, I found out that despite the many advantages it comes with

being a member of EU, there are a lot of negative impacts. I found out that the member nations

were forced to eliminate the remaining residual protection. Therefore, with the elimination of the

trade barriers such as the tariffs, the total revenue received by the nations is reduced. I also found

out some nations such as Romania and Bulgaria were discriminated (Pollapgk,2015. 96). In

addition, due to increased activities such as Cohesion activities, it has led to increased financial

spending thus adding a financial burden to the less developed nations. The integration also led to

the migration of cheap labor from eastern to western Europe. The high level of labor supply results

in low wages. The abolition of trade barriers increases the depended ration, the underdeveloped

nations have a less competitive advantage and thus they will depend on the fully developed

countries to supply them with finished goods (Hodson, 2015 pg. 212). The integration also has

resulted in increased monopoly power. The elimination of trade barriers. The nations were not

ready for the EU membership, the economies of the less developed nations could not survive the

stiff competition from the stable countries.

Surname 2

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

Introduction

European Union was mainly formed to bring the member states closer together with

respects to democracy and human rights. The fair trades and the abolition of trade barriers and the

use of a common currency enhance trade and development of the nations. Therefore, the

integration has some negative social economic impacts (Senninger,2013 pg. 283-306). I carried

out research to establish some of these negative impacts. The main aim of the research is to identify

and provide solutions. I carried out an extensive research within the member states.

Historical background of EU

European Union is an economic and political union which entails 28-member states. It was

established in 1999 and came to full effect in 2002 (Pollack,2015 pg. 39). It traces its origin from

the steel and Coal community. The policies governing the market ensures that there is free

movement of good and services within the internal market. The first member nations were the ones

we term as the inner six; France, Belgium, Italy, Luxembourg and Netherlands. The main aim of

its formation was to create an efficient internal market system.

Social-economic benefits

Peace

The integration has brought peace to the member state as they operate under same rules. In

20112, the union was awarded the Nobel peace prize (Senninger,2013 pg. 283-306). The free travel

of member state citizen has also enhanced peace due to free interactions of people from diverse

cultures. The police force also cooperates across Europe and thus able to reduce crime rates.

Surname 3

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

Economic development

The union has governing rules which allows its members to trade freely without paying the

duties. It promotes trade and development since goods and services can be transported from one

region to another freely (Senninger,2013 pg. 283-306). The less developed nations can import

goods and services they have low competitive advantage and cater the high demand of its clients.

Political stability

The member state has attained political stability due to the cohesion since they share common

laws. The nations operate under a single rule and incase of political instability, they can enjoy

benefits of humble guidance from the other states. This has promoted political and economic

growth.

Negative impacts

High inflation rate

Due the flow of cash, the inflation rate as per aerostatics 2017 was 1.8% in January. And

in January 2018, the annual inflation rate of EU was recorded as 1.7% from 1.8% in December

(Senninger,2013 pg. 283-306). The lowest inflation rate was recorded in Cyprus as -1.5%, Greece

0.2% and Ireland 0.3%. the highest inflation rate was recorded in Lithuania and Estonia with both

having registered 3.6% and Romania 3.4 %.

Surname 4

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

source: https://www.statista.com/statistics/225698/monthly-inflation-rate-in-eu-countries/

http://www.inflation.eu/inflation-rates/cpi-inflation.aspx

Low revenue

The integration advocated for the abolition of the remaining securities. The removal of the

barriers meant that the nations could trade freely (Hodson, 2016). The tariffs which used to earn

the member state revenue was reduced (Senninger,2013 pg. 283-306). The low revenue makes the

poor nations poorer as their economies can survive the stiff competition faced by the well-

developed economies. Gross domestic products of the member states vary due to the difference in

competitive advantage and thus the low revenue. Among the ten states with least GDP as per the

ranking in 2017 wre Romani and Bulgaria with Seyerozapaden region in Bulgaria having the least

-2

-1

states

Axiinflation rate

memner state

Annual inflation ratet (%) jan 2018, in assecending order

finland portugal croatia italy malta euro area bulgaria

luxe germany france netherlands EU pland sweden

slovenia belgium austria latviia czech hungary slovakia

UK romania estonia lithunia

Surname 5

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

GDP. 50% of the regions recorded to have low Gross domestic products were in Bulgaria.

Germany has the largest GDP among the member states with 20% contribution to the economy.

Source: http://www.imf.org/external/pubs/ft/weo/2005/02/data/index.htm

Dependency

Due to the abolition of trade barriers, the nations can trade freely. The less developed

nations have a low competitive advantage and thus they fully relied on the well-developed nations

for certain good they cannot have produced cheaply. It also enhances monopoly (Hodson, 2016).

Low and disparities in gross minimum wages

20%

27%

17%

14%

11%

GDP AS PER 1ST JAN 2018

Germany others united kingdom france itally spain netherlands

Surname 6

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

Due to the high supply of labor from western Europe, it resulted in low wages across some

of the members states. Twenty-two-member states only had a minimum wage. The low wages in

the exempted nations resulted in low standards of living. A case study of Bulgaria which had the

least gross minimum wage in 2018. The highest gross minimum wage of a member country was

eight times the value of the lowest minimum wage. The deduction of the common tax of 261 euros

a month discriminate some of the nation’s reducing their total revenue.

Sources: Eurostat:

http://ec.europa.eu/eurostat/statisticsexplained/index.php/Minimum_wage_statistics

High energy consumption

200

400

600

800

1000

1200

1400

1600

2018 gross minimum

wage

wage rate

years

Minimum Wage ratein EU member State As per 2018 jan

Bulgsris lithunia romania latvia hungary

croatioa astonia portugal greece malta

slovenia spain UK/Germany/fran

Surname 7

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

Since 1990, EU has registered high primary energy consumption rate, some of the member

state do not produce sufficient energy to supply to its citizens and thus it relies on the other member

state for energy. Due to the industrialization and high target production rate, there is high demand

for electric power.

Discussion

Based on the findings, it is evident that the expansion of EU had many impacts to the

economies of the member state and the society at large. The expansion had impact on the social

relations of the nations, some of the member states were neglected and were not given equal

chances as the other nations. Therefore, the unfairness has triggered hate rate among the nations.

The free movement of people also has caused a lot of chaos and misunderstanding among the

nations.

Recommendations

The union should have not totally abolished the trade barriers and allow the use of one

currency. The trade restrictions could have been left to allow the member states to earn revenue

through tariffs. It could have also restricted the migration of cheap labor from western Europe

which resulted in a reduction of wages and thus low standards of living. In addition, it could have

reduced dependency ration as the poor nations could manage their economies and protect them

from the stiff competition. The cohesion requires the nations to contribute a certain amount of

money to enhance and finance their operations (Pollack,2015). Member state should not be

Surname 8

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

discriminated to ensure that they have an equal platform to develop and benefit from the union.

The integration also has resulted in increased monopoly power.

In conclusion, the expansion of the EU came with a lot of challenges to the member nations.

The poor countries were the most affected and their economies were at risk of collapsing due to

the stiff competition from the well-established nations. I found out that the member nations were

forced to eliminate the remaining residual protection. Therefore, with the elimination of the trade

barriers such as the tariffs, the total revenue received by the nations is reduced. Several aspects

should be undertaken to ensure that the nations are not facing harsh socioeconomic problems.

References

Pollack, Mark A. Policy-making in the European Union. Oxford University Press, USA, 2015.

Adams, Neil. Regional development and spatial planning in an enlarged European Union.

Surname 9

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

Routledge, 2016.

Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

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Surname 10

1.Hodson, Dermot. Institutions of the European Union. Oxford University Press, 2017.

2.Senninger, Roman. "Issue expansion and selective scrutiny–how opposition parties used

parliamentary questions about the European Union in the national arena from 1973 to

2013." European Union Politics 18.2 (2017): 283-306.

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