ABSTRACT
This chapter examines reform of the EU enlargement of the Union and its effects on the reform debate. Sizeable transfers under Cohesion policy (and CAP) would therefore be needed. The EU Cohesion countries would potentially lose Structural and Cohesion Funds, and the budgetary balances of the net contributors would worsen. The Madrid European Council in December 1995 asked the Commission to take its evaluation of the effects of enlargement to Community policies, particularly with regard to agricultural and structural policies, and to prepare a composite paper on the EU's approach to enlargement and a communication on the future EU financial framework after 1999. The EU's financial support for transition countries was initially channelled through the PHARE (Poland-Hungary Assistance for Reconstruction) programme and loans from the EIB under the Europe Agreements initiated in 1990. The financial aspects of Agenda 2000 were more difficult to agree, with the debate among Member States running for over 18 months.
