With the fifth round of enlargement in May 2004 ten new member states joined the European Union (EU). In January 2007 the fifth enlargement round of the European Union was completed by the accession of Bulgaria and Romania, two further transformation states, which exhibit a clearly lower income level even compared with the new member states which joined in 2004. In addition to the significant political effect of the European integration on European cohesion, the enlargement process brings about the removal of further economic barriers for trade, foreign investments and in particular for the migration of workers. Especially in the run-up to the EU-enlargement 2004 there were fears that the large income and wage differential may imply intensified competition with labour intensive products and the misalignment of capital. Furthermore immigration of workers from the new member states may lead to reduced wages and rising unemployment. But, besides this possible disadvantages benefits for the current member states may result from the liberalisation effects on goods and factor markets and the expansion of the Single Market by the Central and Eastern European Countries (CEEC).

Recently a study on behalf of the German Ministry for Economics and Technology (Berlin) on the Effects of EU-enlargement on growth and employment in Germany and selected member states was completed. Get more information on projects and publications on EU-enlargement by the provided links above.