Vangelovski
If you knew about the 2007 financial crisis, there would be no rational nor logical purpose to ask what happened to Bulgaria after they joined EU in 2007 – I think you should look for evidence supporting your claim that there will be no growth or investments for Macedonia to join EU.
On the contrary, Macedonia will probably receive investments funds from EU on regional development, the so-called ERDF, ESF and Cohesion funding. These funds are provided for countries like Macedonia and are used to develop economic structures, creating jobs, research and innovation, and infrastructure investments. These funds are much needed and would support Macedonia’s development.
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Vangelovski
The reforms and strengthening of state structures and institutions, along with favorable taxation is a result of being an aspiring member of EU – the carrot and the stick – This incentive may not have influenced Macedonian government had it not been there.
Secondly, research evidence on new members in 2004 (Latvia, Estonia, Slovakia, Czech Republic, Lithuania, Poland, Hungary, Slovenia) have shown that access to EU markets (thru EU agreements) have resulted in substantial growth in trade. Membership brings further trade liberalization regarding sensitive sectors (agriculture, steel, services) and non-tariff barriers as well as a possible reduction of transport costs.
Furthermore, research point to FDI inflows as key driver for economic growth for these new members in the second half of the 1990s. Foreign investors regarded these countries as up-and-coming new EU states with structural improvements such as low cost production, skilled workforce, and EU adapted standards.
A country of such small size as Macedonia would most likely benefit from EU markets. As long as they run the country in proper order, the upside potential outweighs the downside risk.
Now, do you care to share with us the “abundance of evidence” that there will be no growth or investments for Macedonia?
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I know about the 2007 financial crisis.
On the contrary, Macedonia will probably receive investments funds from EU on regional development, the so-called ERDF, ESF and Cohesion funding. These funds are provided for countries like Macedonia and are used to develop economic structures, creating jobs, research and innovation, and infrastructure investments. These funds are much needed and would support Macedonia’s development.
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Vangelovski
EU membership has nothing to do with economic growth, it is economic reforms within that particular state. Membership itself does not guarantee anything. In fact, it can lead to dependence on socialist subsidisation and the creation of non-competitive economies as we have seen across Greece, Spain, Portugal and dare I say even Italy and France.
Secondly, research evidence on new members in 2004 (Latvia, Estonia, Slovakia, Czech Republic, Lithuania, Poland, Hungary, Slovenia) have shown that access to EU markets (thru EU agreements) have resulted in substantial growth in trade. Membership brings further trade liberalization regarding sensitive sectors (agriculture, steel, services) and non-tariff barriers as well as a possible reduction of transport costs.
Furthermore, research point to FDI inflows as key driver for economic growth for these new members in the second half of the 1990s. Foreign investors regarded these countries as up-and-coming new EU states with structural improvements such as low cost production, skilled workforce, and EU adapted standards.
A country of such small size as Macedonia would most likely benefit from EU markets. As long as they run the country in proper order, the upside potential outweighs the downside risk.
Now, do you care to share with us the “abundance of evidence” that there will be no growth or investments for Macedonia?
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