The European Union and Immigration from New Member Countries

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Case Details:

Case Code : ECON017
Case Length : 20 Pages
Period : 1945-2005
Pub Date : 2006
Teaching Note :Not Available
Organization : -
Industry : -
Countries : EU countries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The European Community (EC)

After the end of the Second World War, Europe was divided into two opposing blocs - the US-led free-market oriented Western Europe and the Soviet Union-led socialist Central and East Europe. The West European countries, devastated by the war, realized that economic protectionism and chauvinistic nationalism were factors that could lead to war among various nations. Jean Monnet, considered by many as the architect of the European Union, felt that if Europe was to avoid the scourge of destructive wars, the European states must come together. He declared, "There will be no peace in Europe, if the states are reconstituted on the basis of national sovereignty...The European states must constitute themselves into a federation."...

The Collapse of the Socialist Bloc and The Copenhagen Criteria

Meanwhile, the collapse of the socialist bloc in Central and Eastern Europe in 1989-90 released many countries from the control of the Soviet Union.

During this period, Poland, Hungary, Bulgaria, Romania, and Czechoslovakia became free of Soviet control. In 1991, the disintegration of the Soviet Union led to the emergence of several new states on the international stage -- the Russian Federation, Lithuania, Latvia, Estonia, Ukraine, Belarus, Moldova, Georgia, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan. Having been severely constrained for decades by centralized planning, many of these newly independent states looked eagerly toward the EC for the development of their economies. It also provided an opportunity for the EC to further the process of European integration...

The Demographic and Economic Profile of The EU

To understand the issue of migration in the EU, it is essential to understand certain important characteristics of the demography and economy of the EU member states. These issues were interlinked, and, individually and in combination, had a significant impact on the growth rates in these countries. The old EU economies, especially, had been struggling with low growth rates for many years. Between 2000 and 2004, the growth rates of GDP of the old EU countries had ranged between 1.0% and 3.8%. (Refer to Exhibit II for growth rates in the EU between 2000 and 2004)...

Excerpts Contd...>>


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