The New EU Frontier: Perspectives on Enhanced Economic Integration

Abstract

The central objective of this report is to identify the best forms of enhanced economic integration that could be pursued over the next 5-10 years between the EU and five of its important neighbour countries: Ukraine, Russia, Egypt, Morocco and Algeria. The report starts from reviewing existing forms of economic integration and time dependencies between them. It then discusses in more detail institutional requirements for alternative options of deepening co-operation with the EU neighbour countries. Subsequently, likely effects of economic integration are discussed. Special sections are devoted to the energy cooperation with Russia, Algeria and Ukraine and to the EU financial assistance to its neighbourhood. The report concludes with policy recommendations that could be relevant for the development of the European Neighbourhood Policy and also for pursuing business opportunities in the EU neighbourhood.

Keywords: ENP, economic integration, EU Neighbourhood

JEL Classification: F15, F10, F22, F20, F35, F36, F40, Q41