What’s the benefit to institutions like the European Union of having poorer states join?

Question

How do less economically wealthy states help institutions like the European Union and why are they needed?

Edit: apologise for the awfully written title

In: 12

Answer 1

Very broadly speaking, and specifically about the economics, there is not a lot of benefits to the EU bringing on poorer states. The EU, today, isn’t solely about the economics, though.

There are some economic benefits – bigger market, more aligned labor standards, simpler regulatory processes, less trade friction. But it will also mean additional transfer costs, more subsidies etc.