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EU Membership Strengthens the Competitiveness of the Czech Republic

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  • Jiří Malý
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    Abstract

    As regards the frequently mentioned risks connected with the EU entry, we feel that the analyzed macroeconomic data do not confi rm 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 infl ation 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 defi cit 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 fi rst months of EU membership have rather a positive infl uence on the competitiveness of the Czech Republic.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Acta Oeconomica Pragensia.

    Volume (Year): 2005 (2005)
    Issue (Month): 2 ()
    Pages: 71-80

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    Handle: RePEc:prg:jnlaop:v:2005:y:2005:i:2:id:181:p:71-80

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    Related research

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

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