Poles recently gave a resounding 'yes' to EU membership. But without deep internal reforms, it will not be possible for them to profit from integration.
The public EU debate in
Welcome to the Superstate?
For the countries of New Europe, the shape of the EU Constitution and the proposed system of voting are crucial.
The Constitution will be ready for signing on
Even though the word "federal" is not used in the draft, the character of the document limits the sovereignty of EU members. Defining foreign and security policy, common trade, monetary (for countries that have introduced Euro) and economic policies and some strategic internal areas of social policy, citizen liberties, healthcare, and also agriculture, transport, energy, and environmental protection are the functions of the new European State. The position of the European Commission and EU President, proposed by the Convention, is simply too strong.
The fact is that, from
the integration will probably cost taxpayers. Independent studies show
that costs of the integration for the state budget are bigger than
profits transferred from the EU institutions. The Gdansk Institute for
Market Economics (IBnGR) reported that Polish fees for EU membership
would cost the state €7.25 billion.
The European Integration Committee (UKIE) disclosed that use of pre-accession (PHARE and others support programs) funds is only around 40 percent. The College of Europe reports that the public sector balance will be negative. Decentralization of public funds management will be realized after 2007. The state is currently being forced to reform an ineffective public sector financing system. The only solution is immediate and radical pro-market orientation, not more and more money to defraud. Without internal reforms, it is impossible to keep 5 percent annual GDP growth, something that is indispensable to profiting from the integration.
is interesting to analyze the map of the Polish EU referendum. The
process of political decision-making underlines the historical division
of the state. The east of
Now that Polish EU admittance is inevitable, entrepreneurs and employees expect internal deregulation, political decentralization, free trade and no duties. The future economic situation is in the hands of local decision makers. The quality of laws and regulations will determine if companies will profit from the integration or if they will pay for ineffectiveness by higher taxes.
For more than 40 years
The public sector needs a fast transformation and new EU countries will take part in this process. But the key is internal reform of member states. A proper solution towards reinforcing competitiveness in countries of the New Europe is a low, fixed and linear tax, introduced in almost all countries of the region (except Poland). Maybe this is the wind of change that will come from the East?