Will the expansion of the EU cause social and economic problems to its existing members?

EU reaches landmark expansion deal: European Union leaders meeting in Brussels have agreed on a complex deal to finance the bloc's eastward expansion starting in 2004. ''We have an agreement,'' Danish Prime Minister Anders Fogh Rasmussen told reporters after a two-day summit of hard haggling over numbers, and the future of agricultural subsidies. He said the financial arrangements agreed at the summit would now put to the 10 applicant countries - Cyprus, Malta and eight East European nations - in Copenhagen on Monday. Formal invitations to become members will be issued at a mid-December EU summit in Copenhagen, bringing to an end the Danish six-month presidency of the union. Under the deal hammered out in Brussels: Farm subsidies for new member-states will be gradually phased in over a period of nine years. The farm budget, now standing at 40bn euros will rise to 45bn euros by 2006, increasing by 1% per year until 2013 to offset inflation. The newcomers will receive 23bn euros in structural aid over the first three years. The EU will ensure that they do not pay more into the EU budget than they get back, between 2004 and 2006. ''This has been a very successful summit. It represents a major step forward towards the historic decision on enlargement,'' said Mr Rasmussen.

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