Acta Oeconomica Pragensia 2005, 13(2):71-80 | DOI: 10.18267/j.aop.181

EU Membership Strengthens the Competitiveness of the Czech Republic

Jiří Malý

PhDr. Jiří Malý, Ph.D., Institut integrace ČR do evropské a světové ekonomiky Fakulty mezinárodních vztahů Vysoké školy ekonomické v Praze.

As regards the frequently mentioned risks connected with the EU entry, we feel that the analyzed macroeconomic data do not confirm that these risks have materialized. The example of the Czech Republic, which joined the EU in 2004, conversely points to an improvement of most macroeconomic indicators following the EU accession, and in fewer cases maintenance of the results from time before the membership. After the EU entry the inflation rate is kept on a low level, real GDP accelerated, economic level of the Czech Republic is increasing towards the EU average, the foreign trade records very positive results, the unemployment rate did not increase, real wages grow, exchange rate of the Czech crown against the euro and USD keeps strong positions, based on the Convergence Program, general government deficit of the Czech Republic has started to reduce after EU accession. As follows from the statistical data, period of intensive preparation of the Czech Republic to join the EU as well as first months of EU membership have rather a positive influence on the competitiveness of the Czech Republic.

Keywords: Czech Republic, European Union, integration, competitiveness, economic policy, gross domestic product, foreign trade, inflation, unemployment, wages, exchange rate, public finance

JEL classification: E20, E30, E60

Published: June 1, 2005  Show citation