Turkey’s EU membership ‘would boost’ Dutch economy

The macroeconomic think-tank CPB predicted that should Turkey be accepted into the EU, Dutch exports to Turkey could be boosted over time by 20 percent. This would boost prosperity in the Netherlands by EUR 160 million.

Turkey would benefit even more, as its prosperity would increase by an estimated 1.4 percent, or EUR 3.5 billion, the CBP said in its report entitled: Assessing the Economic Implications of the Turkish Accession to the EU.

The report was drawn up in preparation for accession talks with Turkey. EU leaders are scheduled to decide by the end of 2004 on whether it should start accession negotiations with the mainly Islamic country.

The CPB said Turkey could profit even more from joining the EU if also reformed the country’s institutions when implementing compulsory EU regulations. It said this would increase confidence in the government in Ankara.

This would further stimulate trade with other countries and increase the country’s prosperity by about EUR 22 billion, or 9 percent, the CBP said.

Such extra growth would have a positive knock on impact to the rest of Europe, with the Netherlands potentially benefiting to the tune of EUR 500 million, the think-tank said.

But the CBP warned that its estimates on Turkey’s membership of the EU does not take into account the effect of contributions to the EU budget.