Enlarging Europe - Opportunities for the Swedish Economy
This report forms part of the broader project building an evidence base on how EU enlargement may impact the competitiveness of Swedish and European businesses. The study applies advanced economic models to simulate how tariff elimination and regulatory harmonisation between the EU and the candidate countries (Albania, Bosnia & Herzegovina, Georgia, Moldova, Montenegro, North Macedonia, Serbia and Ukraine) may impact trade, growth, production, and labour flows.
The trade effects of enlargement will be very positive for the candidate countries but also provide a modest boost to the economies of the EU27, including Sweden
The figures support the following policy conclusions:
* The EU should focus on deep market integration, regulatory convergence, and investment in connectivity and innovation ecosystems in the accession process to maximise economic engagement.
• Regulatory barriers to services trade within the Single Market need to be reduced to make this sector more competitive and to fully realise the benefits of enlargement.
• More free trade agreements (FTA) between the EU and non-EU countries will broaden access to global markets and mitigate risks in key industrial sectors, enhancing overall trade resilience.
• Facilitate trade and outsourcing to the candidate countries to offset production declines and strengthen EU competitiveness. Trade and investment facilitation can help businesses explore and enter the new candidate country markets.
• Enhance EU-wide market and supply chain integration through regulatory convergence and improved connectivity.
• Innovation amongst Swedish firms should be stimulated to improve competitiveness in an enlarged Union, including encouraging innovation partnerships, improving conditions for digital transformation, and adopting advanced technologies.
• Advanced training and education should be put in place to improve workforce adaptability during sectorial shifts and ease sector-specific transitions, which meet market demands