ABSTRACT
On 1 May 2004, ten countries entered the EU, increasing its membership from 15 to 25. This enlargement increased the population of the Union by 20 per cent to 457 million, expanded its area by 26 per cent and increased total GDP by 5 per cent or an amount roughly equal to the GDP of the Netherlands. This enlargement, to be followed by Bulgaria and Romania in 2007, and later by Croatia, Turkey and possibly others, presents a major challenge for the Union in terms of its functioning, economic and business environment and future direction.
