Membership applicants have nearly half of EU population

The EU's 12 candidate mem bershave a combined population of 167.4 million, almost 45 per cent of the present EU total

The EU's 12 candidate mem bershave a combined population of 167.4 million, almost 45 per cent of the present EU total. Their land mass is nearly 60 per cent of its size.

The aggregate gross domestic product of the 12 is only 6 per cent of the EU total, but about 12 per cent when purchasing power is taken into account. Living standards vary from 18 per cent of the EU average in Latvia to 59 per cent in Slovenia.

Big increases in industrial production were recorded between 1993 and 1996 in Poland (36 per cent), the Czech Republic (19 per cent), Hungary (18 per cent) and Slovakia (16 per cent).

Agriculture is substantially more important to all applicants, ranging from 34 per cent of GDP in Romania to 6 per cent in the Czech Republic.

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Between 1991 and 1996 EU exports to central Europe rose by almost 30 per cent a year while imports from the region went up yearly by a quarter.

The applicants' share of total EU trade rose from 4 to 9 per cent in the same period while the EU's share of their trade went up from 26 to 57 per cent.

Fast Track To Accession

Cyprus: Applied to join in 1990, the most economically advanced of the candidates. Prospects of actually joining depend on lasting political solution on the island, which has been divided since 1974 when Turkish troops occupied the north.

The Greek-Cypriot part of the island benefits from a low rate of unemployment (2.5 per cent), controlled inflation (3 per cent), a growth rate of 3 to 4 per cent and GNP per capita of $13,000. Its leader, President Glafkos Clerides, and his government are recognised by the UN.

The Turkish-Cypriot part has a GNP of $4,100 per capita and is largely reliant on Turkey. A UN force of 1,100 soldiers patrols the border between the two entities.

Czech Republic: Already invited to join NATO, has stable institutions, respects human and minority rights and has shown real success in economic stabilisation, despite recent turmoil.

Smooth transition from communism in 1989 under the guidance of Vaclav Havel, now president.

Growth rate of 4 per cent, GNP per capita of $3,870 (World Bank). Inflation is 8.8 per cent.

Created in 1993 when Czechoslovakia broke into two separate countries - 10.5 million citizens. A financial crisis in spring 1997 precipitated a devaluation which led to the resignation of Prime Minister Vaclav Klaus on November 30th.

Estonia: Only Baltic state judged ready to start negotiations, has democratic characteristics, a viable market economy and the ability to stand up to competition, according to the Commission.

There are concerns about treatment of Russian-speaking non-citizens, 35 per cent of the population.

Having gained independence in 1991, it has 1.46 million inhabitants and economic growth of 4.3 per cent, expected to reach 6.8 per cent in 1997. GNP per capita is $2,860.

Hungary: Has already been invited to join NATO. Its institutions are stable, according to the Commission, although it says administrative reforms must continue.

Unemployment is 8 per cent and GNP per capita is $4,120. It has had a multi-party system since the collapse of communism in 1989.

The population of 10.48 million is predominantly Catholic. Minorities include gypsies, Germans, Slovaks, Slavs and Romanians.

Poland: Also invited to join NATO, it is the largest of the possible EU candidates with a population of 38.6 million and a viable market economy in which prices and trade have been largely liberalised.

The first non-communist government was created in 1989 and Solidarity leader Lech Walesa was elected president a year later.

The September 1997 elections were won by the Election Action group (AWS), which developed from Solidarity. It formed a coalition with the liberal centre-right Freedom Union (UW).

GDP growth is between 6 and 7 per cent per annum, but inflation is still high at 13 per cent. Unemployment is around 10 per cent, and some 20 per cent of the active population works in agriculture.

Slovenia: One of the most prosperous states in eastern Europe, it gained independence in 1991. It had been the smallest republic of Yugoslavia, with a population of two million.

The economy suffered seriously from the war in ex-Yugoslavia as Slovenia's main market dried up, leading to a trade deficit of $1,091 million in 1996. Trade and commerce have since been redirected to the EU, which took 64.6 per cent of exports and supplied 67.6 per cent of imports in 1996.

There is little foreign investment - foreigners own only 4 per cent of Slovenian companies. But the economy is booming with a GDP of $9,632 per capita in 1996. Inflation is forecast at 9.5 per cent.

Slow Track To Accession

Bulgaria: Bulgaria is battling to liberalise and modernise its economy in order to become a serious candidate. But it is struggling economically and remains highly dependent on Russia, particularly for energy.

A period of economic disaster caused by a slow start to reforms in 1989 led to inflation of 311 per cent in 1996 and 243 per cent in February 1997. The International Monetary Fund came to the rescue in June 1997, setting up a programme of austerity.

The present anti-Communist coalition, United Democratic Forces, has undertaken a programme of economic reform and pledged to fight crime and corruption. There are problems with human rights.

Latvia: A stable democracy, it has made considerable progress towards a market economy. However, investment is vital in agriculture and administrative structures, the Commission has said.

The economy experienced 2.5 per cent growth last year and is expected to reach 4 per cent this year. Inflation has been reduced from 24 per cent in 1995 to a predicted 9 to 10 per cent in 1997; the present GDP per capita is $2,000.

Lithuania: Has problems with its judicial system and economic reform. The economy is not considered sufficiently advanced for EU membership.

The economy began to take off in 1995 with a growth rate of 2.5 per cent, expected to increase to between 4 and 5 per cent this year. Inflation has come down from 13.1 per cent last year to 8.4 in the first 10 months of 1997.

GDP has increased from $1,150 per capita in 1994 to $2,100 in 1996. It is governed by a political partnership of ex-Communist president Algirdas Brazauskas and the liberal right wing led by Gediminas Vagnorius.

Romania: Its structures are currently considered weak. Although there has been an improvement in democracy there are still shortcomings, notably in the areas of minority and children's rights, according to the Commission.

There has been considerable progress in the liberalisation of the economy but large investment is still required. Inflation is high at 30.1 per cent in 1996, and growth hovers around 4.1 per cent.

The government is a coalition dominated by Christian Democrats, elected in 1996. Slovakia: Made substantial economic progress since it split from Czechoslovakia in 1993 and is likely to meet the economic criteria for EU entry in the medium term. Inflation is at 5.5 per cent and the growth rate is 6 per cent. GNP is $2,950 per capita.

Its record on rights, however, is far from meeting EU criteria.

Very Slow Track

Turkey: First applied for EU membership in 1963. Its human rights record, particularly in Kurdistan, its occupation of northern Cyprus and its failure to establish normal neighbourly relations with Greece have blocked membership.

A customs union with the EU came into effect in 1995.

It has a population of 61.6 million. Unemployment is running as some 6 per cent but inflation at 80 per cent.