Implications of this year’s enlargement of the European Union: A preliminary analysis

As visiting speaker at this year’s Annual Meeting, Ifo was honoured by the President of the Czech Republic, Prof. Václav Klaus, who spoke on the effects of EU enlargement on both the new and old member states and on the EU as an institution. President Klaus emphasised that the new members have gained secure political recognition, which is especially important for them. “Through EU membership they will again be counted as normal European countries, after half a century of abnormality, after half a century of life under the communism.” For the previous member states Klaus sees few advantages. For the EU as an institution, transaction costs will increase with a great impact on decision making.