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The Vienna Institute for International Economic Studies

Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw). The Vienna Institute for International Economic Studies. Introduction. S á ndor Richter. richter@wiiw.at. http://www.wiiw.ac.at/. Triangle of the enlargement process. The existence of a functioning market economy (1).

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The Vienna Institute for International Economic Studies

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  1. Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw) The Vienna Institute for International Economic Studies Introduction Sándor Richter richter@wiiw.at http://www.wiiw.ac.at/

  2. Triangle of the enlargement process

  3. The existence of a functioning market economy (1) The existence of a functioning market economy is assessed an the basisof whether: • Equilibrium between demand and supply is established by the free interplay of market forces; prices, as well as trade, are liberalised; • Significant barriers to market entry (establishment of new firms) and exit (bankruptcies, liquidations) are absent; • The legal system, including the regulation of property rights, is in place; laws and contracts can be enforced;

  4. The existence of a functioning market economy (2) • Macro‑economic stability has been achieved including adequate price stability and sustainable public finances and external accounts; • Broad consensus about the essentials of economic policy; • The financial sector is sufficiently well developed to channel savings towards productive investment.

  5. The capacity to withstand competitive pressure and market forces within the Union (1) • This sub‑criterion is assessed on the basis of the following: • the existence of a functioning market economy, with a sufficient degree of macro‑economic stability for economic agents to make decisions in a climate of stability and predictability; • a sufficient amount, at an appropriate cost, of human and physical capital, including infrastructure (energy supply, telecommunications, transport etc), education and research and future developments in this field; • the extent to which government policy and legislation influence competitiveness through trade policy, competition policy, state aids, support for SMEs, etc;

  6. The capacity to withstand competitive pressure and market forces within the Union (2) • the degree and the pace of trade integration a country achieves with the Union before enlargement. This applies both to the volume and the nature of goods already traded with Member States; • the proportion of small firms, partly because small firms tend to benefit more from improved market access, and partly because a dominance of large firms could indicate a greater reluctance to adjust.

  7. Negotiated Chapters 1 Free movement of goods 2 Free movement of persons 3 Free movement of services 4 Free movement of capital 5 Company law 6 Competition & state aid 7 Agriculture 8 Fisheries 9 Transport 10 Taxation 11 EMU 12 Statistics 13 Social policy & employment 14 Energy 15 Industrial policy 16 SMEs 17 Science & research 18 Education & training 19 Telecommunications 20 Culture & audiovisual 21 Regional policy 22 Environment 23 Consumers & health protection 24 Justice & home affairs 25 Customs union 26 External relations 27 Common foreign & security policy 28 Financial control 29 Financial & budgetary provisions 30 Institutions

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