Lemierre, Jean --- "Capacity building challenges in the run-up to EU enlargement and beyond" [2004] ELECD 148; in Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris (eds), "The Economic Potential of a Larger Europe" (Edward Elgar Publishing, 2004)

Book Title: The Economic Potential of a Larger Europe

Editor(s): Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843769620

Section: Chapter 3

Section Title: Capacity building challenges in the run-up to EU enlargement and beyond

Author(s): Lemierre, Jean

Number of pages: 3

Extract:

3. Capacity building challenges in the
run-up to EU enlargement and
beyond
Jean Lemierre1

Looking ahead, the major challenge for the EU acceding countries is that
transition has not yet been completed. To quote an example from previous
enlargement rounds, Spain and Portugal took another ten years after their
accession to the EU to make further reforms and to adapt their economies
and their societies. The main challenges the new EU members states now
face include, apart from implementing the acquis communautaire, reining in
the fiscal deficit, making structural reforms ­ and responding to the pres-
sure of the people, who want a reward for the extraordinary efforts they
have made already over the past ten years of transformation. They have
been very good, they have done a lot. But they want rewards, and they will
get some. Those measures and measures taken to enhance competitiveness
mean costs, in the fields of environment, education, and so on; so the acced-
ing countries will continue to be under pressure. Finally, unemployment
can come and it is coming. In many countries in Central Europe and for the
same reasons, transition has thus been both destruction and creation. So
what is the answer?
The way forward will be to boost the private sector. Against this back-
ground, the first priority will be to reform the banking sector, to improve
its capacity to finance the real economy sufficiently. The level of financial
banking intermediation in central Europe is still very low, much lower than
...