May 2004












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European Expansion Brings Huge Advantages,
But Transition Difficult for New Member Nations
by Sean OíDriscoll

There are changes to the front gardens of 10 Washington embassies this month. Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia have hoisted European Union flags alongside their national flags after a decade-long struggle to join what many believe will become the worldís next superpower.

Just 15 years ago before the fall of the Berlin Wall, the thought of these communist nations (excluding Malta and Cyprus) joining the EU would have seemed fairly unlikely. In fact, the eight former Soviet Bloc states represented everything the European Union was set up to defeatótotalitarianism, human rights issues and economic stagnation.

But now strong democracies have taken hold of these Central and Eastern European states, which boast some of the best inward investment records in Europeóthe Balkan states in particular profiting from high-tech employment and an educated young workforce.

In Washington, EU membership comes with it a huge diplomatic effort to educate the world t o the new European framework. Itís also time to celebrate a defining moment in European history.
ìIt will be like a party after a party,î joked Lithuanian Ambassador Vygaudas Usackas, who is due to join the other nine ambassadors for a celebration in Congress early this month, in addition to the slew of other activities in May marking the EU expansion.

All 10 new members join a European Union that is fast becoming the United States of Europeówith a single currency, a Supreme Court in the shape of the European Court of Justice, and a federal-state judicial system. Although Spain was allowed a two-year grace period to adjust to the EU when it joined in the 1980s, the 10 new states have to adopt 80,000 pages of new laws all at once. It is a mammoth and at times daunting undertaking.

However, according to Slovak Ambassador Rastislav Kacer, the new states have been preparing for this changeover for years. ìItís a big burden for small nations in many ways,î he said. ìBut we had a long-term transition phase. Slovakia has been preparing for 10 years. There was a long time which allowed us to get qualified to carry out [EU-mandated laws].î

The transition to a whole new democratic process has not always been easy. Just trying to decide on the best voting system for the European Parliament has taken years, and an agreement still has not been reached, even though elections are approaching next month.

According to Polish Ambassador Przemyslaw Grudzinski, the voting problem is regrettable but should be resolved by the end of the year. ìWe need to have an effective voting system, and we need to ensure that the voting system will be accepted all across Europe,î he said. ìPerhaps it was not the best thing that we werenít able to come to a resolution at talks last December, but I think all members stepped back and reflected on this issue. After May 1, we may be able to come to a successful conclusion.î

The issue comes down to a balance of power. A European constitution failed to emerge from a summit meeting of European leaders in December when Spain, a current member, and Poland opposed a new voting system that would diminish their strength relative to France and Germany. Some of the smaller states also want a system with built-in checks to ensure that larger countries do not overrun smaller membersí voting powers.

It remains to be seen, said Grudzinski, whether an agreement can be reached by the June elections. ìPoland and other members would like this clarity as we approach our first elections to the European Parliament. It wouldnít be a disaster if it happens later. As long as it is part of this yearís calendar, I would not see it as a major concern,î he explained.

All 10 members also join an EU still reshaping its relationship with the United States after the pre-Iraq war turmoil, in which Franco-U.S. relations in particular reached a critically low point. In the middle of it all, French President Jacques Chirac sharply criticized the pro-American East European states and warned that they ìmissed a good opportunity to shut up.î It was a clear threatófollow the European line or EU membership just might not happen.

The ambassadors from the new member states, however, are keen to explain that these past differences are being worked out. ìWe are all European. We donít have to agree on everything,î said Ambassador Kacer. ìWe have had ups and downs in our relationships, and I donít think [Chiracís] statements have had long-term contributions.î

Kacer added that he was never afraid that bitterness between the United States and France would lead to a cancellation of Slovakiaís EU membership. ìIn the end, the political decision on enlargement was made long before the Iraq crisis,î he said. ìThere was never a question of breaking off those negotiationsóit was only discussions on a time frame and ability to cope with technical requirements, so I had no worry about [EU] enlargement. There were some nations, ëolderí nations, who were having difficulties but these are being resolved.î

French and German criticism of the Iraq war was also aimed at Poland, one of the key players in the U.S.-led coalition in Iraq. But even this staunch U.S. ally has begun expressing apprehension as the situation in Iraq develops. In March, Polish President Aleksander Kwasniewski said he feels ìuncomfortable due to the fact that we were misled with the misinformation on weapons of mass destruction.î And more recently, Polish military officials argued against taking Shiite leader Moqtada al-Sadr by force in Najaf to avoid the type of violence that U.S. forces encountered in Fallujah.

Nevertheless, the alliance with the United States remains strong, insisted Ambassador Grudzinski. ìGood allies need to talk between each other on important strategic and tactical development,î he said. ìWe have the common stake and the stake is huge. I wouldnít say it is a rift, or a gap or a controversy. One of the aspects of free nations engaged in this operation is that they need to talk, discuss and exchange points of viewóotherwise what is the point of having this relationship? So I would not make more of it than an exchange of honest opinion.î

Although all of the Franco-U.S. bickering made for tense times during the final lead-up to EU expansion, the eight former Soviet states also heard grumblings from some prominent Russian politicians, who were accustomed to seeing the former communist states as shadows of the motherland and who were now indignant that these nations were looking to the West. Some politicians even talked of tariffs and trade restrictions against the new EU members.

ìThere were still remnants of the old thinking,î admitted Lithuanian Ambassador Usackas. ìI truly believe that this does not represent the thinking of the political establishment in Russia. After all, we are positive bridge builders. The relationship has only improved in investment and cooperation with Russia.î

One of the great ironies of Lithuaniaís EU membership is that it now sees itself as assisting Russia, acting as a doorway to the giant EU market. It is a dramatic change of position for the Lithuanian people.

ìOn the one hand, of course, there is the bitter experience of Soviet regime,î said Usackas. ìBut living together under the Soviet occupation, we learned the language, the traditions and culture, and I think we will contribute in a positive way so as to be strong bridge builders and ëknow-how transmittersí between NATO and the EU on one hand and Russia on the other.î

The recent increase in trade between Lithuania and the nearby Kaliningrad region of Russia is an example, the ambassador said, of how much Russia has to gain from more liberal EU trade policies and efficient ways of doing business.

ìEU membership has only been positive for the relationship,î Usackas said. ìThis is the view of the political establishment in Moscow; it is the view of the people.î

The controversy in Russia did show, however, that the turmoil of 20th-century European history could never be far away from negotiations of EU membership. Witness Germanyís insistence that the Czech Republic recognize the property rights of Sudentenland Germans who were driven off their Czech lands after World War II.

Some of Czech press and politicians flew into a rage at the very prospect of paying reparations for a political crisis that was brought on by Germanyís invasion of the former Czechoslovakia.
Czech Ambassador Martin Palous, however, avoided the tough talk being used by the Czech media. ìI would not use strong words here,î he told The Washington Diplomat. ìObviously, we would no t like to start playing this game of who is more guilty on this or any other thing. We would like definitely to have a chance to debate the past with our German neighbors but focus on the future.

ìThis debate is maybe an important historical point,î he continued. ìBut it should not lead, in our belief, to cases made at all sorts of courts and property rights prioritized. So we donít think there is a space for this type of approach, but otherwise, on national levels, there are many bodies discussing all kinds of issues.î

The effects of globalization and greater trade competition are of far greater concern across Eastern Europe. In Poland, the EUís decision not to allow the countryís farmers to take the same level of produce subsidies as their Western European counterparts remains a serious sticking point.

ì[Farming difficulties] are a huge problem for Poland since we have about 20 percent of the population employed in the agriculture sector producing only about 5 percent of the [gross domestic product],î said Ambassador Grudzinski. ìThe Common Agricultural Policy will not cover Poland from day one of European integration. Polish farmers will be at a disadvantage for the first few years after joining. This is a fact of life and despite all the advantages, there is objectively builtóI would not go so far as to say discriminationóbut I would say an inequality within the EU system.î

Nevertheless, the ambassador said that the subsidies are still far better than previous state payments, and the overall effect for the Polish economy will be very positive.

The transition will be tough, but Slovak Ambassador Kacer agreed that the benefits will be huge for any Eastern European country willing to grasp them.

ìItís going to be a tough life, but a tough life in a sense that it offers opportunities for those who are courageous and are willing to fight for what they want,î he said. ìI think there are good opportunities. I think it is up to you how you use that opportunity. If you let it go, it may play against you. If you play you it smart, it will help you a great deal. The attitudes to the European Union are going to determine a huge amount.î

Sean OíDriscoll is a contributing writer for The Washington Diplomat.

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