European Union capital and labor fears over Eastern expansion ungrounded

According to the report published over the weekend by the leading European economic institutes including the German Institute for Economy Research in Berlin, the wave of labor force migration from Central European countries will not flood the European Union (EU) following enlargement nor will capital drain from the EU. Only the labor markets of the countries bordering with the new candidates may experience some negative results of the accession. The study sharply contrasts with the common belief of EU citizens and points out that both imports from and exports to the countries outside the EU account for a meager 1% of the EU's GDP. In fact, the outcome of enlargement may be positive by creating new jobs to meet a growing trade with new members. The current $25 billion trade surplus with the region may even double. The enlargement may only have negative effects on the unskilled labor of Germany and Austria employed in sectors such as construction or the shoe and garment industry. (Gazeta Wyborcza, page 24) P.S.