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Case Code: CLIBE007
Case Length: 2 pages 
Period: --  
Pub Date: 2005
Teaching Note: Not Available
Subject :Business Environment
Price:Rs.50
Organization :--
Industry :--
Countries : --

Expansion of European Union*

 

ABSTRACT

The caselet highlights the expansion of the European Union (EU). It describes the growing concern among member countries about new countries joining the EU and takes a look at the apprehensions of the central European countries over issues like social values and sovereignty.
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Issues:

  • Apprehensions of the member countries over new countries joining the EU.
  • How did the central European countries go about stimulating growth.
  • Growing concern over the deterioration of relations between central and western European countries.
Introduction
On May 1, 2004, eight central European countries - Poland, the Czech Republic, Slovenia, Slovakia, Estonia, Latvia, Hungary, and Lithuania along with the Mediterranean islands of Cyprus and Malta joined the European Union (EU).

People in all the central European countries voted in favor of joining the EU in referendums held in their respective countries. This raised concerns among the people in the western European countries like Germany and Austria.

They feared that jobs in their countries would be outsourced to countries like Poland...
Questions
1. Why are Germany and Austria apprehensive about countries from central Europe joining the European Union?

2. How can the central European countries benefit by joining the European Union?

Keywords

European Union (EU), Schengen system, VAT, corporate tax rate



* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.