>> Hungary is joining the EU on 1st May, 2004

From May 1, Hungary is now Part of the EU.

>> What kind of immediate changes will happen after 1st May, 2004?

• Hungarian people can go to any EU country with their ID cards, the passport is no longer needed. The border between Austria and Hungary will not disappear immediately because Hungary will join the Schengen system later on.

• Barriers of free movement of goods will disappear. Delivery of all agricultural goods, wines, fruits, vegetables, beverages will all be free without any physical and customs duties. Intra-EU trade is unified.

• Hungary will be part of the Common External Border of the EU. The external customs rates will be unified as well.

• Hungary follows the VAT system of the EU from 1st January, 2004. (Example: 12% VAT rates become 15%, and there is no 0% VAT rate any more, the minimum VAT rate must be 5%.)

Budapest, January 12 (MTI) - President Ferenc Madl said that for Hungary, the first of May would be the most important day of 2004. He added that full European Union membership will mean realisation of the nation's dream. It will become a full and equal member of the great European community, shaping its future and contributing to building Euro-Atlantic ties in full knowledge of its membership.

>> The EU will be more powerful after the enlargement

The EU, considered as a unit, has the second largest economy in the world, with a 2002 GDP of 8,447 billion euro, second only to that of the United States (9,239 billion euro, 2002 equivalent). The EU economy is expected to grow further over the next decade as more countries join the union - although the new States are usually poorer than the EU average, and hence GDP per capita over the whole Union will fall over the short-term.

>> The basic policies of the European Union (what makes it a Union)

• Free trade of goods and services among member states

• A common external customs tariff, and a common position in international trade negotiations. Removal of border controls between its member states (excluding the UK and Ireland, which have derogations).

• Freedom for citizens of its member states to live and work anywhere within the EU, provided they can support themselves.

• Freedom for its citizens to vote in local government and European Parliament elections in any member state.

• Free movement of capital between member states.

• Harmonisation of government regulations, corporations law and trademark registrations.

• A single currency, the Euro (excluding the UK, Sweden and Denmark)

• A large amount of environmental policy co-ordination throughout the Union.

• A Common Agricultural Policy and a Common Fisheries Policy.

• Co-operation in criminal matters, including sharing of intelligence (through EUROPOL and the Schengen Information System), agreement on common definition of criminal offences and expedited extradition procedures.

• A common foreign policy as a future objective, however this has some way to go before being realised. The divisions between the member states regarding the Iraq crisis in 2003 highlights just how far off this objective could be before it becomes a reality.

• A common security policy as an objective, including the creation of a 60,000-member Rapid Reaction Force for peacekeeping purposes, an EU military staff and an EU satellite centre (for intelligence purposes).

• Common policy on asylum and immigration.

• Common system of indirect taxation, the VAT, as well as common customs duties and excises on various products.

• Funding for the development of disadvantaged regions (structural and cohesion funds).

• Funding for programmes in candidate countries and other Eastern European countries, as well as aid to many developing countries.

• Funding for research.

Source: http://en.wikipedia.org/wiki/European_Union