Summit eyes EU expansion

The question of European Union expansion will top the agenda at a key economic meeting in Salzburg, Austria, later on Wednesday.

Central and eastern European leaders are congregating over the next three days in Mozart's birthplace for the World Economic Forum's annual central and eastern European summit.

The meeting takes place amid concerns that the European Union is turning sour on expansion and looking inward.

But EU officials have rejected any suggestions that the organisation is putting the brakes on the enlargement process.

Enlargement candidates

First set of applicant countries: Poland, Hungary, the Czech Republic, Estonia, Slovenia and Cyprus

Second set: Romania, Bulgaria, Slovakia, Latvia, Lithuania and Malta

"This is utter rubbish. We don't see any reason to complain. Everything is running according to schedule," said Jean-Christophe Filori, spokesman for Guenther Verheugen, the EU enlargement commissioner, who will attend the meeting.

Membership date

Ever since the six candidates for fast-track membership - Cyprus, Czech Republic, Estonia, Hungary, Poland and Slovenia - began negotiations two years ago, they have been demanding that the EU set a membership date.

But the EU has been reluctant to provide a date, saying it might give the applicant countries unrealistic expectations.

However, Mr Filori said the European Commission may propose an enlargement timetable in November when it publishes its annual report on countries' progress on membership.

Most of the first wave of applicants want to join by 2003, but the EU has said that date might be a little over optimistic.

Before they are allowed in, candidate countries need to bring their legislation into line with the EU 's three basic principles - human rights, democracy and market economics, and have to align it on technical issues like subsidies, environment and commercial standards.

Given the varying speed at which some countries are adapting to EU standards, Commission officials have said there is a possibility that not all the first wave candidates may join at the same time.

Hungary is the leader of the pack, with Poland following a close second. But the path ahead for the EU hopefuls is fraught with difficulties.

For example, the Czech Republic was a favourite to be one of the first new members, but has been heavily criticised by the EU for being too slow in adapting EU norms.

Sticking points

And as time goes on, the EU and the applicant countries are reaching difficult points in the negotiating process.

Poland and the EU recently started negotiations on agriculture, likely to be a key sticking point for the two.

The talks are a political hot potato for both countries, with Poland unwilling to reform its bloated agriculture sector for fear of angering a key section of the electorate.

About a quarter of Poland's workforce is employed in agriculture, but the sector accounts only for about 5% of the country's economy.

EU reform will be a key element for expansion

Any hint of reform to the sector has brought Polish farmers to the streets. At the same time, the EU is trying to reform its agriculture policy and is unwilling to hand out more farm subsidies.

Under a reform of the EU's Common Agriculture Policy, new members will not be eligible for the same farm aid as current members.

Another problematic issue in the membership process is that the EU itself needs to reform itself in order to take in new members.

Some existing EU member want this to happen soon, before any new members join, especially since the EU has invited a second wave of applicant countries to start talks this year.

The countries are Bulgaria, Latvia, Lithuania, Malta, Romania and Slovakia.

Although the road ahead for both the EU and its aspiring members looks tough, analysts say the future advantages tied to EU expansion are undeniable: a bigger internal market, more consumers to sell to, more business opportunities, and stable, prosperous neighbours.