The Hindu Business Line : EU enlargement `will be boon for India'

THE European Union (EU) relations with India would get further reinforced on all fronts following the EU's enlargement when 10 countries from central, eastern and southern Europe formally join the 15-member bloc on May 1.

Addressing a news conference here, the Ambassador of Ireland, Mr Philip McDonagh, representing the Irish Presidency of the EU now, said the EU's enlargement would not only mean the addition of 10 countries touching the lives of 450 million citizens across the 25 countries in one way or another, but it would also have an indirect impact across the world, especially in countries that are strong partners of the EU such as India.

The Head of Delegation of the European Commission in India, Mr Francisco da Camara Gomes, who was present in the news conference, said, "this is history in the making" and said enlargement would strengthen the EU's role in world affairs — in foreign and security policy, trade policy and the other fields of global governance. He said developing countries would benefit from single tariff on goods and agri products.

Mr McDonagh presented a broad survey detailing how the proposed enlargement of EU taking on eight countries from central and eastern Europe — the Czech Republic, Latvia, Estonia, Lithuania, Poland, Hungary, Slovakia and Slovenia — as well as the two Mediterranean islands of Malta and Cyprus would have salutary effect on India.

Export figures clearly show that India's trade with the acceding countries is on the increase. From 1999-2000 to 2001-02, exports have increased from Rs 1,000 crore to Rs 1,370 crore. He said that once these countries join the EU, there would be common rules and regulations, standards and harmonised rules and single tariff benefiting Indian exports into the 25-member Union.

Though the EU enlargement does not automatically mean the immediate extension of a single currency to all the acceding 10 countries, it is a question of time before the euro becomes legal tender in these countries as well.

Indian companies would then realise the benefits associated with the use of a single currency in an expanded market. He said major Indian companies are also carrying on their trade in euro and this augurs well for both an enlarged EU as also its trading partners such as India.