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This introduction summarizes the pathways up to and the experience of membership of the European Union of five recent member countries: Hungary, Romania, Poland, Slovakia, and Slovenia, all of which acceded in 2004 or, in the case of, Romania, in 2007. Key economic and domestic political developments as well as changes in public attitude to European integration are addressed using a comparative pattern; in addition, future research priorities are outlined in the hope of encouraging further academic and policy-oriented study both in the respective member countries and on the European scale.

The European Union (EU) experienced its largest expansion in 2004, when ten countries from Central and Eastern Europe (CEE) joined. This was followed by the accession of Bulgaria and Romania in 2007 and Croatia in 2013. The purpose of this study is to demonstrate how these countries have been able to benefit from EU membership. The topic’s relevance is emerging because of discussions with candidate countries for EU membership. Before a new round of accessions, it is important to assess how previously admitted states have been able to benefit from their membership and what lessons can be learned from their cases. The paper covers the period between 2004 and 2021. The main questions concern the evolution of select CEE countries in recent years, the results that have already been achieved, and the weakest features of their integration. The paper suggests that although these countries have been able to benefit from membership, they still face significant challenges as members of the EU. To endorse this suggestion, the paper applies Tibor Palánkai’s integration maturity and profile theories. The research builds on two hypotheses: first, the CEE countries in the analysis could improve their integration profile if they developed deeper economic ties with other EU members; second, countries that are located closer to the core countries of the EU (such as Austria and Germany) could exploit most of the benefits as a result of higher foreign direct investment (FDI) attractiveness. The paper designs a new composite indicator to provide a comprehensive understanding of the costs and benefits of EU membership. The findings support the hypotheses: countries such as the Czech Republic, Poland and Slovenia, which have formed deeper economic (trade and investment) relations with the EU’s core countries, could significantly improve their composite indicator values. The results can contribute to integration theory and enlargement decisionmaking. [ABSTRACT FROM AUTHOR]

This study contributes to the debate on the determinants of over-qualification among European Union (EU) mobile workers. More specifically, we quantify the impact of observable compositional heterogeneity on the over-qualification gap between mobile workers from new EU member states (EU13) and those from old EU member states (EU15). Using data from the EU Labour Force Survey 2014 Ad Hoc Module, we first identify factors that may determine the likelihood of over-qualification among EU mobile workers through logistic regression models. Next, using a variant of the Blinder–Oaxaca decomposition technique, we measure the effects of heterogeneity on human capital and differential distribution across European labour markets on the differences in over-qualification between these two groups of workers. Our results show that the differences in human capital explain an important aspect of the gap. However, the most important explanation for the disparities between both groups is the distribution of workers across countries clustered according to the type of labour market regulation. Our study reveals that despite the formal equality guaranteed by the EU law there are persistent inequalities in terms of educational–occupational adjustment that are largely (but not exclusively) due to structural and compositional factors. [ABSTRACT FROM AUTHOR]

Research background: European Structural and Investment Funds (ESIF) as the main instruments of cohesion policy (CP) in the EU, provide a broad source of financing opportunities for the EU member states. The biggest amount in the CP budget is oriented to convergence NUTS 2 regions that have GDP p.c. below 75% of the EU average. The new members of the EU (accessed in 2004 and 2007) had available 176.3 billion EUR in the period 2007-2013 and 217 billion EUR in the period 2014-2020. Even the absorption rate (in 2007-2013) of available ESIFs is high (above 90%), the real implications on their economies don't come automatically and they represent the area for examination. Purpose of the article: The research aims to analyse the impact of ESIFs absorption in EU new member states in the period 2008-2016 on their GDP p.c. Methods: As the sample has time and cross-sectional dimension, the panel data in static and dynamic form is employed. The analysis covers the major part of the financial framework 2007- 2013 and a part of financial perspective 2014-2020 (depending on the available data). Findings & value added: The results indicate that increase in ESIF p.c. for 1% will contribute to the GDP p.c. increase for 0.0053 to 0.0064 % (static model) and for 0.008% (dynamic model). Although the impact of ESIFs is significant and positive, it is quite (and unexpectedly) small, and consequently new EU member states should not rely too much on them as the source of economic progress. It is necessary that countries should focus on channeling funds into specific segments (sectors, policies) that will result in increased competitiveness of their economies. The contributions lie in creating GDP p.c. determination function; in including all new EU member states; in including more recent available data and by observing ESIFs as a part of growth model. [ABSTRACT FROM AUTHOR]

This paper empirically analyzes fiscal policy behavior in the European Union (EU) Member States and assesses how it has changed during the recent pandemic crisis compared to previous crisis periods. Based on panel estimations, we find that the fiscal reaction has been different this time, both concerning the policy direction as well as its magnitude. We argue that fiscal policy has turned from formally pro-cyclical design prior to COVID-19 period to counter-cyclical in the pandemic years, on average. While this is naturally driven by the wide roll-out of fiscal support measures during the pandemic, including health care expenditures and spending on job security, the change in the fiscal reaction function is still visible if these effects are taken away from the budget, even though the move is less pronounced and signifies a change from a pro-cyclical to an a-cyclical fiscal regime. [ABSTRACT FROM AUTHOR]

The common and main strategic goal of all Western Balkan States is integration into the European Union. Therefore, the transition of the Western Balkan region, as in the case with other Central European transition countries, must be seen as a part of the European integration process. The aim of this research is to tests whether income convergence exists between Western Balkan States and the developed European Union countries, with a comparison with New Member States. In order to test this assumption, regression analysis is used. The results did not confirm that income convergence existed from 1995 to 2019. However, the results indicate a strong impact of the Global Economic Crisis on income convergence, so it existed in the years before and after the Global Economic Crisis. Results also showed faster growth of the New Member States than the Western Balkan States.

The post-accession evolution of the new Member States to the European Union benefits from limited attention in the EU studies literature. More scholarly works are needed to map the performance of Romania and Bulgaria. Therefore, this paper investigates Romania's performance during the six-month Council Presidency to the European Union in the first half of 2019. Building on the framework of analysis of Karolewski et al., the paper makes an empirical contribution. It seeks to analyze if Romania lived up to the challenges of the office and managed to consolidate its reputation and show its political maturity during this crucial political moment, which countries only get to play every twelve years. The paper argues that the Romanian government aimed to project the image of an active, dynamic, and efficient actor, consensus orientated but without significant policy ambitions. It was a test it wanted to pass to confirm that Romania no longer represents an exceptional case in terms of its laggardness.

The 2004, 2007, and 2013 enlargement of the EU opened up free trade opportunities, increasing trade flows and demand for products of agriculture. On the one hand, the integration processes have intensified competition between countries, and on the other hand, they have created new opportunities for them. The aim of the study was to evaluate the effect of European integration on the competitiveness of the agricultural sector in countries that acceded to the EU in or after 2004. The assessment of the competitiveness of the agricultural sector was made using the following indicators: land and labour productivity in agriculture, importance of the agricultural sector in the economy of the EU countries, agricultural trade balance, importance of agricultural export in total export of the EU countries, trade coverage ratio, Grubel–Lloyd intra-industry specialization indicator, and Balassa comparative advantage indicator. The analysis was carried out from 2004 to 2020 with the Eurostat statistical database. The outcome of surveys implies that a gap still exists between the old and the new member states of the European Union (EU) in the efficient utilisation of their production factors, despite an increased dynamics of growth in labour productivity compared with the old member states, the so-called EU-15. The overall competitive position of all EU-13 countries in agricultural trade on the common EU market has improved; however, individual analysis reveals disparities between respective member states. In 2020, net exporters with comparative advantage were Hungary, Bulgaria, Lithuania, and Croatia, and net importers with comparative disadvantage included Poland, Czechia, Slovakia, Estonia, and Malta. Latvia and Romania improved their competitive position in agricultural trade. [ABSTRACT FROM AUTHOR]

The aim of this research is to analyze the short- and long-term relationship between the absorbed European funds and the economic growth in the 11 new member states as a group, and in Bulgaria in particular, during the period 2014-2020. To achieve the aim of the research, we have adopted the autoregressive distributed lag (ARDL) model. The results show that, as public investments, the absorbed European funds have an impact on the economic growth of the 11 new member states in the short, but not in the long term. The relationship between the economic growth and the rate of absorption of European funds in Bulgaria indicates a short-term positive, but not long-term impact of the absorbed European funds on the rate of growth of the real GDP of our country. [ABSTRACT FROM AUTHOR]

The post-accession evolution of the new Member States to the European Union benefits from limited attention in the EU studies literature. More scholarly works are needed to map the performance of Romania and Bulgaria. Therefore, this paper investigates Romania's performance during the six-month Council Presidency to the European Union in the first half of 2019. Building on the framework of analysis of Karolewski et al., the paper makes an empirical contribution. It seeks to analyze if Romania lived up to the challenges of the office and managed to consolidate its reputation and show its political maturity during this crucial political moment, which countries only get to play every twelve years. The paper argues that the Romanian government aimed to project the image of an active, dynamic, and efficient actor, consensus orientated but without significant policy ambitions. It was a test it wanted to pass to confirm that Romania no longer represents an exceptional case in terms of its laggardness. [ABSTRACT FROM AUTHOR]

Although Europe is not associated with the problem of food security, in some countries it may occur at the household level. There is not much research on this problem, especially in the EU-10 countries. Therefore, the aim of the article was to conduct a systematic literature review on the food security in the EU-10 countries and to answer the question of what picture of food security emerges from reviewed articles and whether the issue of food security in EU-10 countries has been sufficiently researched. Following the PRISMA (preferred reporting items for systematic reviews and meta-analyses) methodology, we have identified 58 scientific articles in the Web of Science database devoted to this problem. Results of the review suggest that food security in the EU-10 countries is analyzed mainly at the national level and with the use of secondary data. At the household level it has not been sufficiently studied and existing research is insufficient and not adequately disseminated.

We investigate whether the European Union can be considered as a convergence machine after the 2008/2009 financial crisis. To do so, we econometrically test the relationship between the per capita GDP growth rate and macroeconomic variables in the period of 2004–2018, further subdivided into three periods: 2004–2008, 2009–2013 and 2014–2018. We hypothesize that the 2008/2009 financial crisis had a negative effect on the σ and β-convergence process. Our results support the convergence hypothesis, namely that the poor countries tend to grow faster than the rich countries. The convergence rates ranged between 1.71% and 4.51%. The negative effects of the crisis on convergence have been identified only for the absolute convergence. Our findings demonstrate that economic openness, inflation and government integrity have a positive impact on growth. The effects of unemployment have not been identified. [ABSTRACT FROM AUTHOR]

The aging of European societies is reshaping their population pyramids. The increase in life expectancy and the decrease in the fertility rate lead to an increasing share of the elderly population. This leads to rising age-related expenditures, especially public pension expenditures to GDP. Consequently, economies are reforming their pension systems to make them more sustainable. Next to the aging-related challenges, the new EU members, eleven post-socialist economies: Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia share a similar history of restructuring of their pension systems and establishment of a multi-pillar system. The objective of this article is to examine the similarities and differences between the pension systems of the selected post-transition economies of the European Union to establish the basis for further research, simulations, and assumptions on the impact of future pension reforms. For that purpose, we apply Ward’s clustering methodology on three variable groups in three selected years: 1996, 2006, and 2016. The idea of clustering economies in three years with a 10-year gap is relevant since it reveals how the cluster structure is changing over time. Additionally, three periods represent three different phases in the pension systems’ development. Three groups of variables were used for cluster analysis. First, pension systems’ characteristics include average effective retirement age, pension expenditure, and replacement rate. Second, demographics encompass fertility rate, life expectancy at the age of 65, net migration rate, and old-age dependency ratio. Third, the macroeconomics and labour market variables refer to the GDP growth rate, real labour productivity, labour force participation rate, and the unemployment rate. Results of cluster analysis show that the composition of the countries in the extracted clusters changes significantly, both throughout the observed period and when looking at different variable groups. Our results revealed that the pension systems of economies with later retirement proved to be more sustainable, during the three observed periods, due to lower pension expenditures that are in turn positively reflected in the favourable economic conditions and their labour market.

Motivation: Based on theory, the introduction of a single currency should cause a decrease in transaction costs, which in effect should lead to a drop in consumer prices. However, there is a common perception that the introduction of the single currency is conductive to excessive price increases with this providing a sufficient justification against the introduction of the euro. People subjectively estimate information on a certain economic phenomenon, and that estimation may not necessarily correspond to facts. The discrepancy between perceived inflation and its actual level in the new euro area member states may result from different inflation levels among varying consumption categories.Aim: The aim of the presented research is to assess the impact of the introduction of the single currency (euro) on the inflation rate in a breakdown by COICOP category in 5 countries of Central and Eastern Europe, which in the years 2007–2015 adopted the common EU currency.Results: The research was carried out using the comparative method. The inflation indicators were used in 12 categories of classification of individual consumption by purpose (COICOP). The research was conducted using a medium-term perspective: from the five years before the adoption of the euro to five years after its implementation. After the adoption of the euro, prices grew faster than the general indicator of inflation in two COICOP categories. The first of them was restaurants and hotels; while the second was alcoholic beverages, tobacco and narcotics. In the case of other inflation categories, no regularity was observed. In all investigated Central and Eastern European countries, the medium-term HICP inflation was lower after euro adoption than before.

Copyright of Annals of the Polish Association of Agricultural & Agribusiness Economists is the property of Polish Association of Agricultural & Agribusiness Economists and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of the paper is to investigate if the Western Balkan countries converge towards the new Member States of the European Union, the EU-13. The analysis is focused on beta convergence, defined as a tendency of poor countries to grow faster than rich countries. The analysed period is 2004-2017, with two sub-periods; 2004-2008 and 2009-2013. The subdivision is made in order to test the research hypotheses that the recent financial crisis negatively affected the absolute and conditional convergence process of the Western Balkans towards the EU-13. The relationships between per capita GDP growth rate and selected macroeconomic variables are econometrically tested and the empirical results support the convergence hypothesis. The convergence rates range 1.3%-3.6%. The negative effects of the crisis on convergence are not confirmed, i.e., the convergence rates during the crisis period are the highest among the analysed periods. The poorer countries should open their economies and maintain stable inflation and debt, as economic openness and inflation have a positive impact on per capita growth in the analysed countries, while general government debt has a negative impact.

This paper gives a systematic presentation of public opinion on the euro: the expected consequences, the advantages, and also the fears people have about introducing the single currency. The research also aims to identify the economic variables that may influence citizens’ attitudes towards the euro. The econometric analysis indicates that a higher level of development and higher earnings have a positive impact on public support for the euro, while the unemployment rate and corruption have a negative effect. People think that the euro will have a positive effect; the majority of citizens in the non-euro area are in favour of adopting the euro (but as late as possible); the majority were afraid of losing control over the national economic policy; people expect abuses and cheating on prices during the changeover, and increased inflation following the adoption of the euro. The two countries most opposed to the euro are Poland and the Czech Republic due to political issues. The two countries that have announced the start of the euro adoption process are Croatia and Bulgaria.

This paper analyzes the emigration flows from Croatia and other new EU member states to the core EU countries after their EU accession. In order to assess the magnitude and dynamics of the recent emigration wave properly, we construct the series of indirect emigration flows, resorting to the national statistical offices of the selected core EU destination countries. We compare the Croatian experience with that of other NMS and show that the intensity of Croatia’s emigration flows after EU accession is proportional to that of the Romanian and Bulgarian cases. Finally, we empirically analyze the economic and non-economic drivers of emigration from NMS to the core EU in the 2000-2016 period. Results show that both economic (measured by different GDP and labour market indicators) and noneconomic factors (capturing the EU accession, the level of corruption in the economy and demographic characteristics of the origin country population) are relevant for emigration decisions.

The article examines the impact of economic growth on the general price level in different countries and that in individual product groups. On this basis, it becomes possible to derive some features of the price convergence process in EU countries for the 1996-2019 period. Emphasis is placed on trends in price levels in Bulgaria, with a special place given to products with administratively set prices and those in which excise duties form a large share of the price. This aims to highlight the direct role of the state in the price convergence of these product groups. The theoretical basis of the study is the Balassa-Samuelson model. The empirical study of the relationship between economic growth and price levels is carried out through regression analysis and panel regressions, with the latter analyzing the change in the strength of the relationship over time and the countryspecific characteristics of this relation. The results clearly show the different levels of price convergence in tradable and nontradable products and the significantly greater importance of economic growth for price levels in the latter group of products. The role of governments in CEE countries and in particular in Bulgaria in limiting the growth of product prices, where governments can directly set prices or influence indirectly (but to a significant extent) through indirect taxes, also stands out. [ABSTRACT FROM AUTHOR]

The goal of this paper is to study the effects of exchange rate arrangements and euro area (EA) membership on the economic growth of ten new member states (NMS) from Central and Eastern Europe (CEE), which joined the European Union (EU) in 2004 and 2007 - the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Bulgaria and Romania. Croatia is excluded from the analysis since it became a EU member relatively late - in 2013. A vector autoregression (VAR) of annual data for the period 2007-2017 is employed. The empirical results provide statistical evidence that flexible exchange rates and EA membership favor the economic growth of the NMS from CEE. [ABSTRACT FROM AUTHOR]

The aim of the paper is to analyse if the Eastern Partnership countries converge towards the new Member States of the European Union, the EU-13. Beta convergence, which is based on the neoclassical growth theory, tests the hypothesis that poor countries tend to grow faster than rich countries, in per capita terms. The analysed period is 2004-2016, with two sub-periods: 2004-2008 and 2009-2013. The subdivision is made in order to test the research hypotheses. The first hypothesis is that the recent financial crisis negatively affected the absolute convergence process among the analysed countries. The second hypothesis is that the recent financial crisis negatively affected the conditional convergence process among the countries. The empirical findings support the economic convergence hypothesis, and the convergence rates range 1.6%-3.8%. The results show that the recent financial crisis negatively affected only absolute convergence. Negative effects of the crisis on conditional convergence are not confirmed.

This paper provides an examination of tourism in the New Member States of the European Union in the period 2007-2015, assessing the importance of tourism for the New Member States economy and the factors that might affect this industry. Considerable research has been devoted to tourism in the developed countries from Europe, but rather less attention has been paid to tourism in the Central-Eastern Europe, the New Member States region. In this regard, the paper will start with an overview of the current state of the literature on this topic, section that precedes a presentation of European bodies and policies in the travel and tourism field. Time series will be analyzed in order to identify the key countries for tourism in the region, according to the number of international arrivals, number of international overnight stays and exports in trade. Tourism contribution and importance for the economy, key destinations in the region, EU and state-level policies in the tourism sector, as well as main challenges and opportunities in the tourism sector will be addressed, focusing on the three key countries identified, Poland, Czech Republic and Croatia, that offer tourists unique, traditional experiences, focusing on niche markets, rather than on mass-market tourism.

The aging of European societies is reshaping their population pyramids. The increase in life expectancy and the decrease in the fertility rate lead to an increasing share of the elderly population. This leads to rising age-related expenditures, especially public pension expenditures to GDP. Consequently, economies are reforming their pension systems to make them more sustainable. Next to the aging-related challenges, the new EU members, eleven post-socialist economies: Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia share a similar history of restructuring of their pension systems and establishment of a multi-pillar system. The objective of this article is to examine the similarities and differences between the pension systems of the selected post-transition economies of the European Union to establish the basis for further research, simulations, and assumptions on the impact of future pension reforms. For that purpose, we apply Ward's clustering methodology on three variable groups in three selected years: 1996, 2006, and 2016. The idea of clustering economies in three years with a 10-year gap is relevant since it reveals how the cluster structure is changing over time. Additionally, three periods represent three different phases in the pension systems' development. Three groups of variables were used for cluster analysis. First, pension systems' characteristics include average effective retirement age, pension expenditure, and replacement rate. Second, demographics encompass fertility rate, life expectancy at the age of 65, net migration rate, and old-age dependency ratio. Third, the macroeconomics and labour market variables refer to the GDP growth rate, real labour productivity, labour force participation rate, and the unemployment rate. Results of cluster analysis show that the composition of the countries in the extracted clusters changes significantly, both throughout the observed period and when looking at different variable groups. Our results revealed that the pension systems of economies with later retirement proved to be more sustainable, during the three observed periods, due to lower pension expenditures that are in turn positively reflected in the favourable economic conditions and their labour market. [ABSTRACT FROM AUTHOR]

Motivation: Based on theory, the introduction of a single currency should cause a decrease in transaction costs, which in effect should lead to a drop in consumer prices. However, there is a common perception that the introduction of the single currency is conductive to excessive price increases with this providing a sufficient justification against the introduction of the euro. People subjectively estimate information on a certain economic phenomenon, and that estimation may not necessarily correspond to facts. The discrepancy between perceived inflation and its actual level in the new euro area member states may result from different inflation levels among varying consumption categories. Aim: The aim of the presented research is to assess the impact of the introduction of the single currency (euro) on the inflation rate in a breakdown by COICOP category in 5 countries of Central and Eastern Europe, which in the years 2007--2015 adopted the common EU currency. Results: The research was carried out using the comparative method. The inflation indicators were used in 12 categories of classification of individual consumption by purpose (COICOP). The research was conducted using a medium-term perspective: from the five years before the adoption of the euro to five years after its implementation. After the adoption of the euro, prices grew faster than the general indicator of inflation in two COICOP categories. The first of them was restaurants and hotels; while the second was alcoholic beverages, tobacco and narcotics. In the case of other inflation categories, no regularity was observed. In all investigated Central and Eastern European countries, the medium-term HICP inflation was lower after euro adoption than before. [ABSTRACT FROM AUTHOR]

It is a common knowledge that the eastern enlargement of the European Union (EU) was an extremely important undertaking for both the New Member States (EU-10) and the "old Union" countries (EU-15). One of the most important effects was significant acceleration of the development of mutual trade links, including changes in their commodity structure. In the study presented in this article, we attempted to verify the hypothesis whether, as a consequence of the eastern enlargement, the EU-10 and EU-15 markets were increasingly treated by the exporters and importers from Poland as a single market. In analyzing changes in the similarity of import and export structures, we calculated "Euclidean distance" (in 2004–2017), the measure based on absolute differences of individual structure indices. We compared the results for Poland with the other New Member States operating on the single European market. We found that for more than a dozen years Polish exporters and importers have contributed to the increasing similarity of the structures of their respective countries' trade and the EU patterns mostly shaped by the EU-15. The results reflect the ongoing unification of the foreign trade system and its arrangement toward the recognition of both areas as a single market. [ABSTRACT FROM AUTHOR]

Copyright of Ekonomski Vjesnik is the property of Ekonomski Vjesnik and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

It is a common knowledge that the eastern enlargement of the European Union (EU) was an extremely important undertaking for both the New Member States (EU-10) and the "old Union" countries (EU-15). One of the most important effects was significant acceleration of the development of mutual trade links, including changes in their commodity structure. In the study presented in this article, we attempted to verify the hypothesis whether, as a consequence of the eastern enlargement, the EU-10 and EU-15 markets were increasingly treated by the exporters and importers from Poland as a single market. In analyzing changes in the similarity of import and export structures, we calculated "Euclidean distance" (in 2004–2017), the measure based on absolute differences of individual structure indices. We compared the results for Poland with the other New Member States operating on the single European market. We found that for more than a dozen years Polish exporters and importers have contributed to the increasing similarity of the structures of their respective countries' trade and the EU patterns mostly shaped by the EU-15. The results reflect the ongoing unification of the foreign trade system and its arrangement toward the recognition of both areas as a single market. [ABSTRACT FROM AUTHOR]

Objective: The objective of this paper is to evaluate the welfare state models in the EU countries and to start the discussion if the new member states (NMS), i.e. those EU member states that joined the EU in 2004/2007, fit the Sapir typology (Nordic model, Continental model, Anglo-Saxon model, Mediterranean model). The second objective is to examine the labour market situation, reduction of poverty and social inequalities in the EU countries. The third one is to open the issue if the public spending can be managed both justly and effectively. Research Design & Methods: The linear regression function and correlation has been used to present effectiveness of social expenditures to reduce poverty, as well as evidence that public spending can be managed both justly and effectively. Findings: This paper demonstrates more similarities can be drawn across the NMS and the EU-15 than within the NMS and EU-15, respectively. The typology of welfare state models is applied to the NMS and their effectiveness is tested. Accordingly, we classify the Czech Republic, Slovenia and Cyprus as countries of the Nordic model; Hungary, Slovakia and Malta as the Continental model; Lithuania, Latvia and Estonia as the Anglo-Saxon model and, finally, Poland, Croatia, Romania and Bulgaria as the Mediterranean model. Implications & Recommendations: Recent data suggest that the global crisis has caused an increase in the level of poverty and social spending in the EU countries. However, this is just a temporary situation and it does reflect the solutions of models. Contribution & Value Added: The NMS tend to be examined as a separate group of countries that – as the literature suggests – depict different qualities of the welfare models than those pursued in the EU-15.

The aim of the paper is to investigate if the Western Balkan countries converge towards the new Member States of the European Union, the EU-13. The analysis is focused on beta convergence, defined as a tendency of poor countries to grow faster than rich countries. The analysed period is 2004-2017, with two sub-periods; 2004-2008 and 2009-2013. The subdivision is made in order to test the research hypotheses that the recent financial crisis negatively affected the absolute and conditional convergence process of the Western Balkans towards the EU-13. The relationships between per capita GDP growth rate and selected macroeconomic variables are econometrically tested and the empirical results support the convergence hypothesis. The convergence rates range 1.3%-3.6%. The negative effects of the crisis on convergence are not confirmed, i.e., the convergence rates during the crisis period are the highest among the analysed periods. The poorer countries should open their economies and maintain stable inflation and debt, as economic openness and inflation have a positive impact on per capita growth in the analysed countries, while general government debt has a negative impact. [ABSTRACT FROM AUTHOR]

Highlights • Effects of trade liberalization on manufacturing export transformation in central European new EU member states are examined. • Alternative export evolution scenarios over 1990–2015 period are constructed using synthetic control method. • Trade liberalization of 1990s improved export performance, quality and technological intensity of exports. • The magnitude of effects depends on the speed of trade liberalization. • Robustness of findings is confirmed with sensitivity analysis. Abstract Prior to 1990s Baltic and Central European new member states of the European Union (NMS) have mainly exported to markets of other centrally planned economies. The exception from this were Croatia and Slovenia whose more liberal institutional setting and existence of economic relationships with market economies resulted in sizeable portion of exports being directed to Western European markets. The aim of this paper is to explore the effects of trade liberalization with European Union on changes in the structure and quality of exports from NMS in the period 1990–2015. Results obtained using synthetic control method (SCM) signal that the timing of trade liberalization with the European Union shaped the evolution of export performance, structure and quality of exports from NMS. The most advanced NMS managed to reap full benefits of preferential access to EU markets. The effects on countries that later embarked on this process, Slovenia and in particular Croatia have been several times smaller. Trade liberalization increased quality of exports and the share of high technology intensive industries in its structure across all NMS. Robustness of findings is confirmed through sensitivity analysis. [ABSTRACT FROM AUTHOR]

The aim of the paper is to analyse if the Eastern Partnership countries converge towards the new Member States of the European Union, the EU-13. Beta convergence, which is based on the neoclassical growth theory, tests the hypothesis that poor countries tend to grow faster than rich countries, in per capita terms. The analysed period is 2004-2016, with two sub-periods: 2004-2008 and 2009-2013. The subdivision is made in order to test the research hypotheses. The first hypothesis is that the recent financial crisis negatively affected the absolute convergence process among the analysed countries. The second hypothesis is that the recent financial crisis negatively affected the conditional convergence process among the countries. The empirical findings support the economic convergence hypothesis, and the convergence rates range 1.6%-3.8%. The results show that the recent financial crisis negatively affected only absolute convergence. Negative effects of the crisis on conditional convergence are not confirmed. [ABSTRACT FROM AUTHOR]

This paper analyzes the emigration flows from Croatia and other new EU member states to the core EU countries after their EU accession. In order to assess the magnitude and dynamics of the recent emigration wave properly, we construct the series of indirect emigration flows, resorting to the national statistical offices of the selected core EU destination countries. We compare the Croatian experience with that of other NMS and show that the intensity of Croatia's emigration flows after EU accession is proportional to that of the Romanian and Bulgarian cases. Finally, we empirically analyze the economic and non-economic drivers of emigration from NMS to the core EU in the 2000-2016 period. Results show that both economic (measured by different GDP and labour market indicators) and noneconomic factors (capturing the EU accession, the level of corruption in the economy and demographic characteristics of the origin country population) are relevant for emigration decisions. [ABSTRACT FROM AUTHOR]

The paper aims to analyze the determinants of intra-industry trade (IIT = simultaneous export and import of similar goods produced in one industry) of the New Member States (NMS defined as 14 countries accessing the EU in the years 2004 and 2007). In our empirical analysis we use panel data with variables controlling for membership of these countries in the EU. Though the time series contain the years before the EU enlargement, we mainly focus on the period since the EU-Eastern enlargement (2004-2013). We estimate the determinants for EU members and NMS what permits us to find out, whether the changes in trade specialization differ between the old and the new EU members. We expect more intensive IIT as a proof of progress of economic integration of the NMS in the framework of the EU membership. Moreover, we examine additional impact of regionalism on IIT that represents the EU Common Commercial Policy (CCP) impact.

This study analyses the status of the new EU member states and, in particular, Poland as it is perceived by the representatives of the older EU members. On a theoretical level, it argues that the transformation of the newcomers into “normal players” or even “regional leaders” is dependent on five specific conditions that each of these countries must fulfil. These range from (1) simple compliance with the EU’s basic norms and (2) a sufficient level of orientation in EU decision-making to (3) establishment of the country’s unique policy expertise, (4) the ability to create winning coalitions and finally and above all (5) a willingness to defend the interests of the Union as a whole. On an empirical level, we draw on an extensive set of interviews with diplomats belonging to the permanent representation of the old member states in Brussels. Based on these data, we conclude that (1) Poland has already established itself as a normal EU player fully comparable with the older member states. In terms of the country’s leadership status, (2) Poland has also moved to the position of frontrunner among the new member states. However, the country still fails in at least one criterion: (regional) leadership. This precludes it from becoming a fully respected and leading state in the EU.

UNIDEV is a three year project funded by the European Commission with the aim of promoting development education (DE) around the theme of the post-2015 agenda in higher education institutions in the new member states of the EU. The project is implemented by organisations in Cyprus (the NGO Support Centre), Slovakia (the Pontis Foundation) and Ireland. The Irish partner, Kimmage Development Studies Centre (DSC), has been engaged in the provision of professional training and education on international development issues for forty years. As new member states (NMS), Cyprus and Slovakia are at the early stages of establishing their respective international development policies. Ireland, an old member state (OMS), has a lengthy and respected engagement in international development, together with an evolving experience raising awareness of development issues among the general public. The principal role of the Irish partner is to share the Irish experience in this regard, through practitioners, academics and policymakers in the three countries. Each of the project partners come up against their own particular challenges in achieving this goal. This article outlines the background to, and purpose of UNIDEV, and specifically describes three major events organised in 2014 which help illustrate the project’s role. As part of the aim of promoting DE, a successful Summer School was organised around the theme of Global Citizenship Education (GCE) and the post-2015 agenda. This was attended by 60 participants from Cyprus, Slovakia and Ireland, and addressed by leading figures in the DE sector in Ireland. Later in the year Kimmage DSC hosted a workshop for seven senior visiting academics and non-governmental organisation (NGO) staff from Cyprus and Slovakia at which a number of Irish based specialists gave their input on DE including: terms and concepts; methodologies; the DE experience in Ireland in both formal and informal education; and workshop actions to mainstream DE in the respective new member states. The conclusion includes reflections on the project to date and recommendations.

This paper examines the determinants of the intra-EU direct investment (IDI) into the New Member States (NMS) using a panel dataset of bilateral capital flows for the period 1993-2013. It is found out by using a simple gravity model that EU membership is the most important determinant. Unlike previous studies including non-EU countries, the distance is insignificant, which is caused by proximity of these countries to one another. A separate analysis focused on subgroups of accession countries gives some evidence that even when size of their economy, distance, institutional quality and EU accession are taken into account, Central European countries receive more IDI than the Baltic and the Balkan states. On the contrary to that, the analysis restricted to the Balkan countries which have joined the EU shows the inexistence of a negative Balkans effect in attracting foreign investment. This finding is relevant because previous studies demonstrate a persistent negative Balkans effect for non-EU Balkan countries and suggests a crucial impact of the EU accession in determining the intra-EU capital flows.

The aim of this paper is to analyze the convergence process among former Socialist countries, the Central and Eastern European (CEE), Western Balkan and Eastern Partnership countries. The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. The analyzed period is 2004-2016, with two sub-periods; 2004-2008 and 2009-2013. The subdivision is made to test if the recent financial crisis affected the absolute and conditional convergence process. The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected only the absolute convergence process. The negative effects of the crisis on conditional convergence are not identified. The poorer countries in the analyzed group should do more to attract investment, as gross fixed capital formation has a clear positive impact on per capita growth in the examined sample of countries. [ABSTRACT FROM AUTHOR]

The enlargement of the EU in 2004 and 2007 to the post-communist states of Central and Eastern Europe brought an encounter between two distinct ‘trade union worlds’ in terms of attitudes towards European integration. Unions from the old EU Member States want to defend their existing national standards, while those from Central and Eastern Europe have nothing to defend and look for solutions at EU level. I ask whether it is possible for the European Trade Union Confederation to realize a trade union vision of ‘Social Europe’ based solely on the perspectives of the West. [ABSTRACT FROM AUTHOR]

How can we explain the politics of euro adoption in the Czech Republic, Hungary and Poland? How did the euro crisis influence their positions regarding euro adoption? This article builds on the domestic politics literature and argues: (i) countries that had joined the Exchange Rate Mechanism-2 early had an easier time adopting the euro compared with those that did not; (ii) having a pro-euro government is a necessary but not sufficient condition to adopt the euro; (iii) the political ideology of the ruling elites is important; (iv) the existence of veto points in the domestic political system influences the entire process; (v) although the three countries have made central banks technically independent, the appointment process remains highly political and complex, which has led to conflicts between the central banks and the governments - negatively influencing euro adoption policies; and (vi) the issue does not have much salience in public opinion and thus does not usually feature high on the agenda of the political elites in the three countries. These three countries to date have not adopted the euro for various domestic political reasons. They have at different times been laggards by default or laggards by choice. [ABSTRACT FROM AUTHOR]

The goal of this paper is to analyze the influence of the European Union funds absorption rate on the short-term economic growth rate of the countries from Central and Eastern Europe over the 2008-2015 period. The object of the study are the European funds in Central and Eastern Europe. The subject of the research is the impact of the European funds on short-run economic growth in Central and Eastern Europe. The thesis of the research is that the European Union funds generate results slowly, in the long term, and cannot be used as a tool for a fast (in the short-run) economic recovery. The better management of the European funds is a necessary but not sufficient condition for the achievement of economic and social cohesion. The objective and the use of the European funds are other determinants of cohesion, therefore it is advisable that all new member states clearly state their European funding priorities. The goal of the study has been achieved by ordinary least squares panel data regression for the 2008- 2015 period. The research results do not imply any significant impact of the European Union funds absorption rate on the growth rate of real GDP in the new member states compared to the previous year. Recommendations have been made on how to increase the positive effect of the European funds on the economies of the new member states. [ABSTRACT FROM AUTHOR]

The transport equipment industry is nowadays amongst the most important manufacturing industries, responsible for a large share of production, exports and R&D in Central and Eastern European countries, particularly the Czech Republic, Slovakia and Hungary. This success is due to the fact that strong production linkages with Western European countries have been developed, particularly with Germany, spurred by large inflows of foreign direct investment and the arrival of large international car companies. Production processes in this industry are nowadays heavily internationally fragmented. We use the World Input-Output Database, which allows us to investigate the evolution of these production linkages across European countries and other major economies in the world in this industry. Considering the time period 1995-2011 and applying input-output indicators reveals changing patterns of domestic and international linkages, patterns of vertical specialization and direct and indirect value-added flows across countries in both the Western and Eastern European countries. By utilizing additional data we draw a more detailed picture of the evolution of these production linkages from which all countries have benefited.

The paper explores and analyses the catching up and falling behind processes in the European dairy sector over the period 2004-2011, using a stochastic metafrontier multiple output distance function for 24 EU Member States. The metafrontier estimates reveal considerable productivity differences in milk production across the EU at the regional (NUTS-2) level. Milk yield per cow is the highest in the old Member States, especially in those regions located in the northwest of the EU, while the lowest productivity is observed in Eastern Europe. The same structure was found for both the TFP (Total Factor Productivity) levels and TFP growth. Moreover, the results for technical change suggest that farm sizes are not optimal in many regions in Central and Eastern Europe from a dynamic perspective. The comparative analysis suggests that in the new compared to the old Member States, fewer farms could benefit from the movement of the frontier. Moreover, there are no signs that poorly performing farms are catching up with the best performing farms in the EU regions/countries. [ABSTRACT FROM AUTHOR]

Objective: The objective of this paper is to evaluate the welfare state models in the EU countries and to start the discussion if the new member states (NMS), i.e. those EU member states that joined the EU in 2004/2007, fit the Sapir typology (Nordic model, Continental model, Anglo-Saxon model, Mediterranean model). The second objective is to examine the labour market situation, reduction of poverty and social inequalities in the EU countries. The third one is to open the issue if the public spending can be managed both justly and effectively. Research Design & Methods: The linear regression function and correlation has been used to present effectiveness of social expenditures to reduce poverty, as well as evidence that public spending can be managed both justly and effectively. Findings: This paper demonstrates more similarities can be drawn across the NMS and the EU-15 than within the NMS and EU-15, respectively. The typology of welfare state models is applied to the NMS and their effectiveness is tested. Accordingly, we classify the Czech Republic, Slovenia and Cyprus as countries of the Nordic model; Hungary, Slovakia and Malta as the Continental model; Lithuania, Latvia and Estonia as the Anglo-Saxon model and, finally, Poland, Croatia, Romania and Bulgaria as the Mediterranean model. Implications & Recommendations: Recent data suggest that the global crisis has caused an increase in the level of poverty and social spending in the EU countries. However, this is just a temporary situation and it does reflect the solutions of models. Contribution & Value Added: The NMS tend to be examined as a separate group of countries that -- as the literature suggests -- depict different qualities of the welfare models than those pursued in the EU-15. [ABSTRACT FROM AUTHOR]

In the paper we investigate differences in the skills mismatch in the new and old EU member states. We look at the influence of their different socio-economic characteristics, in particular age and educational attainment, on the level of skills mismatch and link these to the patterns of economic development, in particular the economic transition in Central and Eastern Europe. The results of our analysis show that workers in the NMS compared to the EU-15 have a higher risk of underskilling and a lower risk of overskilling in all age groups. The differences between the two sets of countries are larger for older workers and smaller for younger ones. This indicates that there may be a gradual convergence of the skills match patterns on the European labour market for younger generations and educational levels. [ABSTRACT FROM AUTHOR]