Report Shows Positive Effects of Enlargement

5.28.46pm GMT Wed 10th Mar 2004

A new report has predicted the expansion of the European Union in May will have a positive effect on the UK economy.

The Ernst and Young Item Club argued last week that the enlarged union could benefit Britain by up to £1 billion per year. The independent economic forecasting group argued that the dismantling of trade barriers would boost GDP by around 0.1 per cent overall.

The report added that the skilled migrants would help the UK to cope with its looming pensions crisis.

East Midlands Lib Dem Euro MP, Bill Newton Dunn welcomed the study:

"This report adds weight to the argument that enlargement of the Union is a good thing. A benefit of £1 billion is good news for the UK and good news for the East Midlands.

"Fears that the richer states would have to subsidise their poorer counterparts should be allayed by this report. East Midlands exporters will benefit from new markets and consumers will benefit from cheaper imported goods."