"Competitiveness Strategies, Resource Struggles and National Interest In the New Europe"

Ellison, David L. (2005) "Competitiveness Strategies, Resource Struggles and National Interest In the New Europe". In: UNSPECIFIED, Austin, Texas. (Unpublished)

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Abstract

The New Member States face considerable challenges as members of the New Europe. This paper analyzes the economic development interests of these countries both in the context of their pre-membership strategies and of the evolving EU policy framework. While previous strategies involved the extensive use of investment promotion schemes and innovative forms of corporate taxation, EU membership constrains these practices in significant ways. Based primarily on the case of Hungary, this paper questions the advantages of EU membership for these states and further questions the ability of the EU policy framework to appropriately address their development needs. In many respects, the advantages of the enlargement appear better suited to appease Western interests in reducing the degree of competition over resources. As such, this paper predicts a persistent division of interests in the New Europe along what one might call a developmental divide, with less advanced states promoting more interventionist strategies and advanced states ultimately promoting a re-nationalization of EU redistributional spending.

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