In doing so, it improves resource allocation and provides both dynamic and static efficiency gains that, in turn, offer the promise of improved economic performance. As for the new member states, many of above mentioned positive features have already been felt as can be seen from faster economic growth and productivity in all of the new member countries.
The new member countries will in the future benefit also from greater markets for their products [and thus scale economies], while the old member countries are facing stiffer competition in many industrial sectors. Stiffer competition is likely to enhance productivity in Europe as a whole.