Romania, Bulgaria, and Turkey are the candidate countries for membership that will not be part of the first group for the expansion of the European Union planned for 2004. Of the three countries, Bulgaria is clearly the most advanced, as it is satisfactorily approaching a market economy.
Romania does not meet either of the two economic criteria, although it has embarked on an accelerated pace of reforms to achieve this goal.
The third country, Turkey, has not yet made progress in this regard, even though, paradoxically, part of its economy already competes with that of the EU within the framework of the customs union.
Bulgaria and Romania are not included in the first wave of European expansion.
However, the progress of Bulgaria and Romania in the last year, particularly in the area of employment, allows the European Commission to conclude that 2007 should be considered a more than indicative date for their accession to the EU.
Both countries can expect European Union support to gradually increase from 2004 onwards. This support will be based on programs that increase financial assistance and on close monitoring with regular evaluations. In turn, both countries will have the right to participate in EU committees and agencies as observers.
The European Commission also proposes doubling economic assistance to Türkiye before 2006, even though it does not yet meet all the political criteria to begin accession talks.
Bulgaria: a functioning market
The European Commission, as early as 1977, declared that Bulgaria met the political criteria established in Copenhagen, although the fight against corruption must remain one of its priorities.
Bulgaria plays a significant role in the dialogue between Europe and the Middle East, standing as an interesting crossroads of cultures. In terms of international trade, it is a highly competitive port for goods between East and West.
The rapid pace of its reforms has achieved significant macroeconomic stability, making the Republic the most Westernized of the candidates for European integration in 2007, and bringing it satisfactorily closer to the acquis communautaire. Its free market system is characterized by its smooth operation, with a conservative policy that is very beneficial for businesses.
According to analysis by Litexco Group, Bulgaria is a country that, like most of the Peco countries, has a population with a very high level of culture and technical training.
Its territory boasts significant resources and exceptional agricultural fertility. The sectors best suited to attract foreign investment are telecommunications, the food industry, and the textile industry. In this regard, foreign capital primarily originates from Greece, Austria, Germany, and Italy; the latter two currently control the majority of financial institutions. Spain, however, accounts for a minimal 0,65% of total foreign investment in the country.
Romania: a big market
Romania is the second largest market by population among the group of countries applying for EU enlargement.
With the election of a center-right government in 1990, the policy imposed by Ion Illieuscu's government was to become increasingly indebted, still generating a less competitive rating today.
To achieve greater macroeconomic stability, the authorities must prioritize reducing inflation through an appropriate combination of measures and by strictly enforcing financial discipline on businesses.
Romania has two important assets in its favor: on the one hand, the size of its market, and on the other, the natural resources that can be a source of foreign investment for their exploitation.
Romania is a very interesting country for Spaniards and Italians, according to findings by the Litexco Group, due to its character and language, which characterize the country as Latin. Even so, Spanish investment only represents 0,22% of total foreign investment. Italian investment has made it the fifth country in terms of investment volume but the first in terms of the number of companies established, with a total of nearly ten thousand businesses.
Türkiye: the unknown
Following the strategy of the Fifteen proposed at the Copenhagen Summit, Turkey will begin its negotiations in 2005 and, according to the European Commissioner for Enlargement, Gunter Verheugen, its accession to the EU will not take place until at least 2013.
Amid all this uncertainty, the European Commission values the country's progress in meeting the Copenhagen criteria, but undoubtedly, it must improve on the fundamental rights and freedoms enjoyed by EU citizens.
Economically, Turkey has stabilized as political interference and distortions in the banking sector have decreased. Inflation remains a problem that needs to be addressed; however, budgetary discipline has improved and transparency in public sector accounts has increased considerably.
Net foreign direct investment represents less than 0,5% of Turkey's GDP, given its political and macroeconomic instability. The sectors with the largest foreign presence are automotive, banking, and food processing.
In short, significant differences remain between Turkish law and legislation, and this is logically incompatible with its integration into the EU, so to speak.
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