Order Code RS21344
Updated October 25, 2006
CRS Report for Congress
Received through the CRS Web
European Union Enlargement
Kristin Archick, Specialist in European Affairs,
Vince L. Morelli, Analyst in European Affairs
Foreign Affairs, Defense, and Trade Division
Summary
The EU views the enlargement process as a historic opportunity to promote
stability and prosperity in Europe. On May 1, 2004, Cyprus, the Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the
European Union (EU), enlarging the Union to 25 members. In January 2007, Bulgaria
and Romania are to formally enter the EU. Turkey and Croatia began accession
negotiations in October 2005. Macedonia was named as a candidate for EU membership
in December 2005. This report will be updated as necessary. For additional information,
see CRS Report RS21372, The European Union: Questions and Answers, by Kristin
Archick, and CRS Report RS22517, European Union Enlargement: A Status Report on
Turkey’s Accession Negotiations,
by Vince L. Morelli.
Background on the European Union
After World War II, leaders in western Europe and the United States were anxious
to secure long-term peace and stability on the European continent and create a favorable
environment for economic growth and recovery. In 1952, six states — Belgium, the
Federal Republic of Germany, France, Italy, Luxembourg, and the Netherlands —
established the European Coal and Steel Community, a single market in these two
industrial sectors that was controlled by an independent supranational authority. In 1957,
the Treaty of Rome established the European Economic Community, extending the
common market to all economic sectors, and the European Atomic Energy Community
to ensure the use of nuclear energy for peaceful purposes. In 1967, these three formations
collectively became known as the European Community (EC).
The EC first added new members in 1973, with the entry of the United Kingdom,
Ireland, and Denmark. Greece joined in 1981, followed by Spain and Portugal in 1986.
The Single European Act modified the EC Treaties in 1987 by increasing the powers of
the European Parliament and enabling the 1992 single market program to move forward.
At the beginning of 1993, the near completion of the single market brought about the
mostly free movement of goods, services, capital, and people within the EC.
Congressional Research Service ˜ The Library of Congress

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On November 1, 1993, the Treaty on
EU Institutions
European Union (Maastricht Treaty) went into
effect, establishing the European Union (EU),
which encompasses the EC. The European
The European Union is a treaty-based,
institutional framework that defines and
Union consists of three pillars: an expanded and
manages economic and political cooperation
strengthened EC, a common foreign and security
among its 25 member states. It is governed by
several institutions.
policy, and common internal security measures.
The Treaty contains provisions that have
The
European Commission is
resulted in the creation of an economic and
essentially the EU’s executive and has the
exclusive right of legislative initiative. It
monetary union (EMU), including a common
ensures that the provisions of the Treaties are
European currency.1 The European Union is
carried out properly. The 25 Commissioners
intended as a significant step on the path toward
are appointed by agreement among the
governments of the member states for five-year
greater political and economic integration.
terms. Each Commissioner holds a distinct
portfolio (e.g., agriculture).
On January 1, 1995, Austria, Finland, and
The Council of the European Union
Sweden joined the EU, bringing membership to
(Council of Ministers) is comprised of
15 states. In June 1997, EU leaders met to
ministers from the national governments. As
the main decision-making body, it enacts
review the Maastricht Treaty and consider the
legislation based on proposals put forward by
future course of European integration. The
the Commission. Different ministers
resulting Amsterdam Treaty increased the
participate depending on the subject under
consideration (e.g., economics ministers could
legislative power of the European Parliament,
convene to discuss unemployment policy). The
strengthened the EU’s foreign policy, developed
Presidency rotates among the member states for
a more coherent EU strategy to boost
a period of six months.
employment, and integrated procedures for
The European Council brings together
managing internal security. In December 2000,
the Heads of State or Government of the
EU leaders concluded the Nice Treaty to pave
member states and the President of the
Commission at least twice a year. It acts
the way for further EU enlargement while
principally as a guide and driving force for EU
setting a limit of 27 member states. The Nice
policy.
Treaty set out internal, institutional reforms to
The European Parliament consists of
allow an enlarged Union to function effectively.
732 members. Since 1979, they have been
Critics argued, however, that Nice established
directly elected in each member state for five-
year terms. The Parliament cannot enact laws
an even more complex decision-making process.
like national parliaments, but has some “co-
Thus, the EU embarked on a new reform effort.
decision” power with the Council of Ministers
and can amend or reject the EU’s budget.
In June 2004, EU leaders concluded work
The Court of Justice interprets EU law
on a constitutional treaty that would have
and its rulings are binding; a Court of Auditors
simplified EU voting rules and contained
monitors the Union’s financial management. A
number of other advisory bodies represent
changes to the EU’s governing institutions.
economic, social, and regional interests.
Commonly referred to as the “constitution,” it
must be ratified by all member states through
either parliamentary approval or public referenda in order to come into effect. The
constitution’s future, however, has been thrown into doubt following its rejection by
French and Dutch voters in May and June 2005, respectively. Some suggest that the
1 Eleven members — Austria, Belgium, Finland, France, Ireland, Italy, Germany, Luxembourg,
the Netherlands, Spain, and Portugal — adopted a single European currency, the euro, on
January 1, 1999; Greece joined in 2001. The 12 participating countries have a common central
bank and a common monetary policy. Banks and many businesses began using the euro as a unit
of account in 1999; euro notes and coins replaced national currencies on January 1, 2002.

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difficulties with ratifying the EU constitution have called into question further
enlargement of the EU, given that considerable public opposition to the constitution, at
least in the French and Dutch referenda, was tied to concerns about EU enlargement. EU
officials emphasize that EU enlargement can still proceed for now under the terms set out
in the Nice Treaty.2
Previous Enlargement
The EU views enlargement as a historic opportunity to help in the transformation of
the countries involved, extending peace, stability, prosperity, democracy, human rights
and the rule of law throughout Europe. The carefully managed process of enlargement is
one of the EU’s most powerful policy tools that has helped to transform the countries of
Central and Eastern Europe into more modern, functioning democracies.
Under Article 49 of the Treaty on the European Union, any European country may
apply for membership if it meets a set of criteria established by the treaty. In addition, the
EU must be able to absorb new members, so the EU can decide when it is ready to accept
a new member. The criteria for EU membership require candidates to achieve “stability
of institutions guaranteeing democracy, the rule of law, human rights and respect for and
protection of minorities; a functioning market economy, as well as the capacity to cope
with competitive pressure and market forces within the Union; the ability to take on the
obligations of membership, including adherence to the aims of political, economic and
monetary union.”3
Accession talks begin with a screening process to see to what extent applicants meet
the EU’s 80,000 pages of rules and regulations known as the acquis communautaire. The
acquis is divided into 35 chapters that range from free movement of goods to agriculture
to competition. Detailed negotiations at a ministerial level take place to establish the
terms under which applicants will meet and implement the rules in each chapter. The
European Commission proposes common negotiating positions for the EU on each
chapter, which must be approved unanimously by the Council of Ministers. In all areas
of the acquis, the candidate country must bring its institutions, management capacity and
administrative and judicial systems up to EU standards, both at national and regional
levels. During negotiations, applicants may request transition periods for complying with
certain EU rules. All candidates receive financial assistance from the EU, mainly to aid
in the accession process. Chapters of the acquis can only be opened and closed with the
approval of all 25 member states, and chapters provisionally closed may be reopened.
Periodically, the Commission issues “progress” reports to the Council and European
Parliament assessing the progress achieved by the candidate country. Once the
Commission concludes negotiations on all 35 chapters with an applicant, the agreements
reached are incorporated in a draft accession treaty, which is submitted to the Council for
approval and to the European Parliament for assent. After signature, the accession treaty
must be ratified by each EU member and the candidate country. This process can take two
years.
2 For more information, see CRS Report RS21618, The European Union’s Constitution, by
Kristin Archick.
3 Conclusions of the European Council, Copenhagen, Denmark, June 1993.

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The EU began accession negotiations in March 1998 with Cyprus, the Czech
Republic, Estonia, Hungary, Poland, and Slovenia. In December 1999, at its summit in
Helsinki, Finland, the EU decided to open negotiations with six others: Bulgaria, Latvia,
Lithuania, Malta, Romania, and Slovakia. Turkey was also formally recognized as a
candidate at Helsinki but remained in a separate category for several years as it sought to
comply fully with the membership criteria (see below). At its December 2002 summit in
Copenhagen, the EU concluded accession talks with Cyprus, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. The accession treaty
was signed with the 10 candidates on April 16, 2003.
Although Brussels would have preferred a prior political solution to the conflict over
Cyprus, it stated that this was not a “precondition” for the divided island’s accession.
Moreover, Athens had threatened to block any enlargement that excluded Cyprus. The EU
had hoped that a settlement between the Turkish Cypriot community in the north and the
Greek Cypriot government in the south would be reached in time for enlargement. Twin
referenda on a U.N. plan to reunify the island were held on April 24, 2004. Approximately
65% of Turkish Cypriot voters approved the plan, but it was rejected by 76% of Greek
Cypriot voters. Without a settlement, EU laws and financial benefits are applied only to
the southern Greek Cypriot part of the island, which is the internationally recognized
state.
On May 1, 2004, the 10 states acceded to the EU, increasing the EU’s population to
roughly 450 million. The new members, however, still face several challenges. Reforms
in areas ranging from public administration to competition must be completed, and it will
be some time before the new states are ready to join the EU’s monetary union or to
participate fully in the Schengen area of free movement to which most EU members
belong. Citizens of new member states may have to wait up to seven years before they
are able to work in all EU countries, many of which fear an influx of low-cost labor.
In December 2004, the EU concluded accession negotiations with Bulgaria and
Romania, and on January 1, 2007, these two nations are to formally join the EU, bringing
the Union to 27 member states and completing the fifth enlargement since 1957. The
addition of these two nations will stretch the borders of the Union to the Black Sea and
increase the population of the EU to over 470 million.
Turkey4 and Croatia
Turkey and the European Community first concluded an association agreement
aimed at developing closer economic ties in 1963, but Turkey’s 1987 application for full
EC membership was rejected. The EU recognized Turkey formally as a candidate at the
1999 Helsinki summit but asserted that Turkey still needed to comply fully with the EU’s
political and economic criteria.
After some contentious debate among EU members over issues related to Turkey’s
lack of formal recognition of Cyprus and whether a “privileged partnership” short of full
4 For more detailed information on Turkey’s accession to the EU, see CRS Report RS22517,
European Union Enlargement: A Status Report on Turkey’s Accession Negotiations, by Vince
L. Morelli.

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membership for Turkey should be retained as a future option, the EU opened accession
talks with Turkey on October 3, 2005. Formal negotiations between the EU and Turkey
on the acquis began in 2006. However, Turkey’s continued failure to recognize Cyprus
and its refusal to open its ports to Greek Cyprus as required by Turkey’s customs union
with the EU will have an “impact on the negotiating process.”5 Some EU members and
many EU citizens remain wary about Turkey’s possible accession given its size and
Muslim culture.6 EU talks with Turkey are expected to take at least a decade to complete.
In June 2004, the EU named Croatia as a candidate and opened accession talks with
that country on October 3, 2005, following a determination that Croatia was cooperating
fully with the International Criminal Tribunal for the former Yugoslavia (ICTY) in
apprehending a prominent suspected war criminal, who is now in prison. At the same
time, some suggested that Croatia only received a positive EU nod as part of a deal to also
open accession negotiations with Turkey on the same day.
Possible Future Rounds of EU Enlargement
The EU maintains that the enlargement door remains open to any European country
that is able to meet the political and economic criteria for membership. It argues that the
possibility of membership will continue to help accelerate reform and promote greater
stability in those countries interested in eventually joining the EU. Macedonia, Albania,
Bosnia, and Serbia harbor EU aspirations and are recognized as potential EU candidates.
On the other hand, even before the debate over the EU constitution, many experts
believed that enlargement was reaching its limits. “Enlargement fatigue” in the wake of
the addition of 12 new members in two years and the rejection of the constitution in
France and the Netherlands, due in part to concerns over the impact of enlargement, has
become a serious issue in Europe. In September 2006, after the EU agreed to admit
Bulgaria and Romania in January 2007, Commission President Barroso suggested that this
enlargement may be the last until the EU constitution is adopted or EU institutions are
updated through treaty amendment. Barroso was referring to the limitations of the Nice
Treaty, which authorized the EU to enlarge to 27 members but no more. For any other
country to be admitted to the Union, the Nice Treaty would have to be amended or a new
treaty ratified that would allow further expansion of the Union. The European constitution
would have facilitated further enlargement but since ratification has been rejected by two
member states, this option is no longer available for now. Similarly, under the accession
structure, membership talks with any candidate country whose accession could have
substantial financial consequences on the Union as a whole, as Turkey or Ukraine would
have, can only be concluded after 2014, the scheduled date for the beginning of the EU’s
next budget framework.7 In preparation for assuming the Presidency of the EU in January
2007, German Chancellor Angela Merkel has spoken of a “pause” in EU expansion and
5 See Council of the European Union - 15/16 June (2006), Presidency Conclusions, at
[http://www.consilium.europa.eu].
6 “Turkey Faces Toughest Test for EU Entry,” Financial Times, June 30, 2005; “Shock, Awe, and
Exhaustion,” BBC News, October 4, 2005.
7 See “The Process of Joining the EU” on the European Commission’s website at
[http://ec.europa.eu/enlargement].

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has asked EU Enlargement Commissioner, Oli Rehn, to prepare a report on the EU’s
ability to further absorb new members.8
For the general public in Europe, apprehensions about further enlargement seem to
be driven by several concerns. One is that the addition of nations with weak economies,
low incomes, and high unemployment could wreak havoc with the economies of other
member states. A second issue is the belief that some of the newest members have been
admitted with less mature democratic institutions or glaring deficiencies in meeting EU
standards. The lack of effective judicial reform in Bulgaria and Romania and the recent
political turmoil in Hungary, Poland, and the Czech Republic could cause long-term
problems for the success of the Union. Another concern is with the overall identity of
Europe and the question of what the Union stands for. Concern over this issue has been
driven by the possible admission of Turkey, a large Muslim state with a culture
considered to be vastly different by many Europeans and not compatible with a European
culture.9 These public concerns have led leaders such as Germany’s Merkel and France’s
Sarkozy to suggest that there may be a need for a debate about the final borders of Europe
or to ask for “a precise definition of Europe’s eastern border.”10
U.S. Perspectives
Successive U.S. Administrations and many Members of Congress have supported
EU enlargement, believing that it serves U.S. interests by spreading stability and
economic benefits throughout the continent. Over the years, a key criticism has been that
the EU was moving too slowly. U.S. businesses believe they will gain access to a larger,
more integrated European market, and see enlargement as forcing further reform of the
EU’s regulatory policies. Some analysts posit that enlargement may also decrease overall
U.S.-EU tensions because many new members are more pro-American. The Bush
Administration welcomed the EU’s enlargement in 2004, asserting that it would help
strengthen the “enduring partnership” between the United States and Europe.
Some U.S. officials are concerned that public worries about EU enlargement, as
expressed in the debate over the EU constitution, could hinder additional EU expansion,
especially to Turkey and the Balkans in the longer term. Others argue that EU
enlargement could have some negative implications for U.S. interests. Some suggest, for
instance, that political instability in a number of central and eastern European countries
may further complicate EU reform negotiations if frequently changing governments shift
policy positions. Others worry that a larger, more confident EU — with an economic
output roughly equivalent to that of the United States and growing political clout — may
increasingly rival U.S. power and prestige.11
8 “Croatia Pushes for EU Entry Date Amid Fears of Delay,” Financial Times, October 9, 2006.
9 “Doubts on Muslim Integration Rise in Europe,” International Herald Tribune, October 12,
2006.
10 “Hope for a Brighter Future,” The Atlantic Times, October 2006, and the Financial Times,
October 2006, Op. Cit.
11 Also see CRS Report RS21875, EU Enlargement: Economic Implications for the United States,
by William H. Cooper.