The cost of growth

The Commission has proposed paying for enlargement through a pre-accession economic assistance programme, worth Ecu 22 bn over…

The Commission has proposed paying for enlargement through a pre-accession economic assistance programme, worth Ecu 22 bn over the years 2000-2006. The Commission is also assuming that sufficient funds will be generated within the EU's present own-resources ceiling of 1.27 per cent of Union GNP. Assuming present levels of economic growth, the Commission calculates that an extra Ecu 20 billion can be raised for the EU budget by the year 2006.

The intention is to provide regional aid amounting to some Ecu 21 bn, and pre-accession aid of some Ecu 500 m per annum to help modernise agriculture. To this, can be added further expenditure designed to bring market prices in the new states to levels prevailing in the EU after CAP reform. While the Commission is reluctant to put a figure on costs in view of reform yet to be agreed, an annual amount of Ecu 1.11.4 bn by the year 2005 is mentioned.