CEE COUNTRIES – SOME ISSUES OF EU ACCESSION

The paper concentrates on some of the basic issues of the Central and Eastern European Countries (CEE) during the process of EU accession. In addition it deals with some other transition countries and the issues related to their relations and possible accession to the EU. The paper starts with a brief theoretical background on transition and problems of convergence. Here the relevance of economic growth and political developments are underlined. The importance of democratic political developments in transition economies as a need for attaining sustainable economic growth is being underlined. This is especially relevant for the CEE countries on the eve of EU accession. The second section of the paper examines the effects of democracy on economic growth. If all the transition economies, including the newly emerging market economies are taken into account than a direct relationship between democracy and economic growth can not be identified. However, when transition countries are examined with respect to the speed of transition process and development of democratic societies, some relevance can be found. In that case there is a point to be made on the relevance of the relationship between democracy and economic growth. The next section analysis the empirical evidence on CEE transition economies. Main economic indicators are being presented and the pace of economic reform highlighted. Here the issue to be discussed is not any more the speed and consistency of the reform process which is at least evident for the first group of accession economies, but the mere fact of the proximity and mutual political willingness for the EU entry. The fourth part highlights the obstacles and dangers for the CEE and other transition economies on the road to go. Cardinal aspects of the accession process and of regional integration are being presented as an issue that is still under intensive discussion. Derived from the convergence theory and the preconditions for economic growth under market conditions the hypothesis developed in this part is that the political issues within the transition economies and in relation to the accession to the EU are becoming dominant. The last section of the paper presents concluding remarks highlighting the main points presented in the paper.