EU expansion 'an economic boost'

Expansion will not just benefit new members, the DTI claims

The expansion of the European Union will benefit each and every EU country, and not just the 10 new members.

That is the prediction of the UK Department of Trade and Industry, which says output in the 15 member states will rise by 0.2 percentage points.

The rise, it says, will be the result of the dismantling of trade barriers.

And while the new members will benefit most, seeing their GDP rise by 1.5%, the DTI says 300,000 new jobs will be created across the whole of the EU.

"Enlargement offers great opportunities for UK companies," said Patricia Hewitt, Trade and Industry Secretary.

Employment fears

She was responding to concerns from some quarters that the UK and other existing members may lose jobs to the cheaper labour markets found in new members such as Poland and Slovakia.

"When the EU last expanded there were fears about jobs and the economy for existing members which never materialised," said Ms Hewitt.

"I believe similar concerns this time will prove to be equally unfounded."

In addition to Poland and Slovakia, the countries that join the EU on 1 May are the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovenia, Malta and Cyprus.

Their governments have satisfied Brussels that their economies, legal systems and democracies are ready for EU membership.

The report said enlargement could bring opportunities for UK companies to bid for infrastructure projects in the accession countries.