This European policy analysis considers the main EU instruments for strengthening state capacity in Central and Eastern Europe (CEE) during the 2004 and 2007 enlargements and draws lessons for the future EU enlargement. The analysis focuses on the forms of state capacity relevant for economic integration, which is widely considered a successful aspect of the earlier enlargements. The paper identifies the main state capacities relevant for this economic success and analyses the key instruments through which the EU helped bring about positive change in CEE state institutions. The text also brings selected empirical data comparing the state capacity of Ukraine, Moldova and Georgia with those of the CEE countries.
The main conclusions are that strengthening state institutions in the candidate countries should be one of the EU’s key priorities for enlargement. This should include not only the judiciary and public administration – crucial for curbing corruption – but also regulatory and developmental state institutions, to ensure that integration brings economic prosperity. Furthermore, the EU’s enlargement strategy should address both economic and social consequences of integration. Ignoring the distributive implications of integration could undermine democracy in the enlarged EU.