eu adopts constitution, faces european union...sources: european union (); u.s. census bureau the...

17
Collegiate Case Study THE NATION’S NEWSPAPER European Union The formation of the European Union has created a unique coalition of countries that have a rich and challenging history. As with decisions and change of this magnitude, there are pros and cons, and obstacles to overcome. This case study analyzes the EU from a variety of issues and perspectives. The impact of the European Union will be historic but will it create a long-lasting powerful union? Will the EU ever compare to the United States of America? Reprinted with permission. All rights reserved. www.usatodaycollege.com PS2005-01 How much is that in euros? By Larry Copeland, Martin Kasindorf and Charisse Jones 12-15 EU expansion brings USA opportunities By Noelle Knox 7-11 Discussion Questions & Future Implications 17 EU adopts constitution, faces substantial hurdles By Noelle Knox 4 By Ellen Hale USA TODAY LONDON An unruly alliance of states gathers to plot its future, each zealously protective of its own identity. Some push for a strong federal union and a president and legislative body with clout. Others, wary of a new super-state, demand freedom to determine their own policies on taxes, immigration and foreign policy. More than two centuries ago, a convention in Philadelphia hammered out the Constitution of the United States of America. Now Europe is beginning a similar effort to craft a unifying charter. Thursday, leaders of the European Europe tries to get on same page 15 nations that seldom agree hope to write a constitution befitting a new 'superpower' Cover story Majority oppose common North American money USA TODAY Snapshots ® By Anne R. Carey and Marcy E. Mullins, USA TODAY Source: Coinstar Americans who favor or oppose creating a common currency for North America similar to Europe’s euro: Yes 43% No 53% Don’t know 4% Case Study Expert Allyson M. Lowe Director of the Pennsylvania Center for Women, Politics, and Public Policy (PCWPPP) and Assistant Professor of Political Science at Chatham College 16 European effort spotlights plight of the Roma By Mary Beth Marklein 5-6

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Page 1: EU adopts constitution, faces European Union...Sources: European Union (); U.S. Census Bureau The European Union was formed in 1951 to unite the countries of Western Europe through

CollegiateCase

Study

THE NATION’S NEWSPAPER

European Union

The formation of the European Union has created a unique coalitionof countries that have a rich and challenging history. As withdecisions and change of this magnitude, there are pros and cons, andobstacles to overcome. This case study analyzes the EU from a varietyof issues and perspectives. The impact of the European Union will behistoric — but will it create a long-lasting powerful union? Will theEU ever compare to the United States of America?

Reprinted with permission. All rights reserved.

www.usatodaycollege.com

PS2005-01

How much is that in euros?

By Larry Copeland, Martin Kasindorf andCharisse Jones 12-15

EU expansion brings USAopportunities

By Noelle Knox 7-11

Discussion Questions & FutureImplications

17

EU adopts constitution, facessubstantial hurdles

By Noelle Knox 4

By Ellen HaleUSA TODAY

LONDON — An unruly alliance ofstates gathers to plot its future, eachzealously protective of its ownidentity. Some push for a strongfederal union and a president and

legislative body with clout. Others,wary of a new super-state, demandfreedom to determine their ownpolicies on taxes, immigration andforeign policy.

More than two centuries ago, aconvention in Philadelphiahammered out the Constitution ofthe United States of America. NowEurope is beginning a similar effort tocraft a unifying charter.

Thursday, leaders of the European

Europe tries toget on same page15 nations that seldom agreehope to write a constitutionbefitting a new 'superpower'

Cover story

Majority oppose commonNorth American money

USA TODAY Snapshots®

By Anne R. Carey and Marcy E. Mullins, USA TODAYSource: Coinstar

Americans who favor or oppose creating a commoncurrency for North America similar to Europe’s euro:

Yes43%

No53%

Don’t know4%

Case Study ExpertAllyson M. LoweDirector of the Pennsylvania Center forWomen, Politics, and Public Policy(PCWPPP) and Assistant Professor ofPolitical Science at Chatham College

16

European effort spotlights plightof the Roma

By Mary Beth Marklein 5-6

Page 2: EU adopts constitution, faces European Union...Sources: European Union (); U.S. Census Bureau The European Union was formed in 1951 to unite the countries of Western Europe through

Reprinted with permission. All rights reserved.

Union gather in Brussels for the startof a yearlong convention that willdetermine the future of Europe. Theconvention is expected to produce awritten constitution that binds thegroup economically, politically and socially.

The goal: create a union powerfulenough to challenge the world's soleremaining superpower.

The man charged with running theconvention, former French presidentValery Giscard d'Estaing, has loftilycompared the gathering to thePhiladelphia convention of 1787. Eventhe word "forefathers" has crept intohis talk.

There are additional similaritiesbetween the constitutional efforts ofthe New World and the Old:

v Representatives of 13 statesgathered in Philadelphia in 1787; 15nations will meet in Brussels over thenext year.

v Like the United States back then,Europe is struggling to find its place ina new world order.

v A common "bill of rights" is underconsideration, as is a common army.

v Meanwhile, many of the sametouchy issues are being addressed —from finding a way to balance powerbetween large and small states todeciding who else will be allowed to join.

This convention will be "rather moremodest" than the Philadelphia one,says Peter Hain, the British minister forEurope and the country's officialrepresentative at the meetings. Evenso, his own prime minister, Tony Blair,declared at the December summit thatset up the convention that the

ultimate goal should be to build a new"global superpower."

Flush with success from the virtuallyseamless introduction of the newsingle currency — the euro — thisyear, many European leaders (andmany regular citizens) are wonderingwhether superpower status is notwithin reach. Ten countries have beentapped to join the EU in two years.Two more could join soon after that.By the end of the decade, a unitedEurope would boast half a billionpeople and a combined economylarger than that of the USA.

But there is broad disagreementamong the 15 member countries over

an issue that would certainly strike achord with the forefathers of theAmerican Constitution, and whicheven now reverberates in the USA:How much power should the federalgovernment have?

Some countries, most notably thepowerhouses of France and Germany,want a strong central government inwhich member states have little vetopower over federal decisions. Theywant Europe-wide positions ondiplomatic and military issues andcommon policies regulatingeverything from crime to immigration.They also want a stronger parliamentand a president.

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Czech Republic

DenmarkFinland

France

Great Britain

Germany

Ireland

Malta

Portugal

Spain

Sweden

AtlanticOcean

Greece

Netherlands

Belgium

AustriaItaly Cyprus

EstoniaLatvia

Hungary

LithuaniaPoland

Slovakia

Slovenia

Lux.

By Quin Tian, USA TODAY

Important EU dates

2002

2004(est.)

EU candidatecountries

EU membercountries

Sources: European Union (www.eurunion.org); U.S. Census Bureau

The European Union wasformed in 1951 to unite thecountries of Western Europethrough economic and socialpolicies promoting peace andcooperation. An expansion isplanned for 2004.

1957: Treaty of Rome creates common market in Europe1979: European Parliament is elected for first time1992: Treaty of European Union signed in Maasstricht1998: European Central Bank established1999: Exchange rates fixed among member states2002: Euro introduced2004: Addition of 10 countries to union; constitution in place

Plans to expandEuropean Unionunderway

Plans to expandEuropean Unionunderway

EU population

million450

375 million25

15

12109

6

1951 1973 1981 1986 1995 2004

EU membership

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Britain has opposed closerintegration, as have many of thesmaller countries. Blair, however,recently has been edging closer tointegration-minded Germany and hasrecommended that the six-monthrotating European presidency beabolished and a permanent postcreated. (It also has been rumored thatBlair would like to be the firstpresident of an empowered EuropeanUnion.)

Even if these obstacles areovercome, formidable challenges willremain. While most Americansautomatically identify themselves asAmerican, no one in Europe callshimself "European."

Moreover, many people hereapparently don't even know what theEuropean Union is: A recent poll ofBritons revealed that one in 15believed the United States was in theEU, and one-fourth didn't know Britainwas a member. "That's a big gap," Hainadmits, "between the leading and the led."

But the most overwhelming obstacle

may be history. Whereas the UnitedStates was a brand new country whenit launched itself, the nations ofEurope have pasts that stretch backthousands of years and often involvedwarring against one another.

Each member has its own strongcultural traditions; most speakdifferent languages. They squabbleamong each other and disagree abouteverything from supporting U.S. plansfor a missile-defense system toadopting the euro. (Britain, Swedenand Denmark have refused to adoptit.) Often, the EU more closelyresembles a giant, dysfunctionalfamily than a union of countries.Members can't even agree on what tocall the written document expected tocome out of the meetings that startThursday. Constitution? Charter? Legalframework?

"Part of the problem with the idea ofa united Europe is that there is no onesingle opinion about anything here,and no way to make for one," saysDonald Cameron-Watt, a retiredconstitutional scholar at the LondonSchool of Economics. "There is no

common history to unite Europe theway it did the United States."

A United Nations of Europe might bea more apt moniker, many observerssuggest. But whatever it becomes, andno matter how strong a constitution itdrafts, some doubt whether theEuropean Union will ever be able tostand up to the United States.

London Times columnist JohnHumphreys asked last week: Is itenough for the European Union tohave a document binding it togetherso that its voice can be "heard in aworld increasingly dominated by onesuperpower"?

"Europe can huff and puff," read theheadline over Humphreys' column,"but it won't challenge America."

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Reprinted with permission. All rights reserved. Page 3

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AS SEEN IN USA TODAY NEWS SECTION, MONDAY, JUNE 21, 2004, PAGE 9A

By Noelle KnoxUSA TODAY

BRUSSELS — After two years ofdrafting and bickering, Europeanleaders have agreed on a newconstitution for the European Union's25 countries and 450 million people.But the historic document is going tobe a hard sell for a growing number ofEuropeans who are disillusioned withthe EU.

Before the constitution can beratified, it faces referendums in atleast seven countries -- including theUnited Kingdom, Ireland, France andDenmark. A "no" vote in any one ofthem will kill it.

A YouGov poll for The Sunday Timesshowed that British voters wouldreject the new constitution 49% to23%.

"The chances are very low" that itwill pass all the referendums, saysAurore Wanlin, a research fellow atthe Center for European Reform inLondon. If that happens, "that will bethe end of the united Europe," shesays, referring to the countriescommitted to the union — includingGermany and France — and those thatare less committed, including Britain,which refused to adopt the eurocurrency. Wanlin suggests that gapcould widen.

Created in 1951 as the EuropeanCoal and Steel Community, the EU hasexpanded from a trading bloc of a

half-dozen countries into a powerfulalliance. The EU, which added 10 newcountries on May 1, now stretchesfrom Sweden and Finland in the northto Spain and Greece in the south.

Compared by its authors to the U.S.Constitution, the European documentoffers rights including freedom ofreligion, speech, shelter andeducation. It also promises to makethe EU a more formidable U.S. ally —or adversary — on issues ranging fromterrorism to trade. The constitutioncalls for:

v A more powerful councilpresident and a foreign minister as akind of counterpart to the U.S.Secretary of State.

v A public prosecutor similar to,but less powerful than, the U.S.attorney general.

v The approval of at least 15member countries — 65% of thepopulation — for passage of laws.

Although Britain won the right foreach country to control its own taxesand social policy, Europeans worrythe EU is taking too much of theirnational sovereignty. Turnout for thismonth's parliamentary elections was45% of eligible voters, the lowestturnout on record.

That put pressure on the leaders toshow they could agree on theconstitution at the summit here lastweek. But they still couldn't decide

who would be the new president ofthe EU commission when Italy'sRomano Prodi finishes his five-yearterm in October.

The two front-runners, BelgianPrime Minister Guy Verhofstadt andEU External Relations CommissionerChris Patten, withdrew their names.British Prime Minister Tony Blair saidVerhofstadt was too much of afederalist. French President JacquesChirac wouldn't accept a candidatefrom a country that isn't using the euro.

EU adopts constitution,faces substantial hurdles

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AS SEEN IN USA TODAY LIFE SECTION, MONDAY, JANUARY 24, 2005, PAGE 7D

European effort spotlightsplight of the Roma

By Mary Beth MarkleinUSA TODAY

VOLUNTARI, Romania —Sometimes, the contempt isunmistakable, like the day ashopkeeper blocked Marioara Trancafrom entering her store and shouted,"Get out of here, Gypsy!"

Other times, it's more discreet. Why,for example, were certain top-scoringsixth-graders rewarded with a crownof flowers, but not Tranca's daughter,Madalina, who had the highest gradesof all?

In such moments, "my heart hurts,"says Tranca, 35, who is from a longline of Gypsies known for theirpotmaking skills. The Romanians, shesays, "believe that we are all stupidand we are all thieves. I don't think itwill ever change."

In a country where the words"Moarte Tiganilor!" ("Death to theGypsies!") are scrawled acrossuniversity buildings, it's tough toquarrel with Tranca's observation. Infact, similar sentiments reverberatethroughout much of Europe, home toan estimated 7 million to 9 millionGypsies, also known as Roma.

In the Czech Republic, 79% ofrespondents to a 2003-04 survey saidthey wouldn't want Roma as

neighbors, according to an EU reportreleased in November. The report alsosaid leaders in the Slovak village ofSvinia refused more than a millioneuros ($1.3 million) in aid because thefunding would have helped the Roma.

Such attitudes are old news to theRoma, who comprise a diverse ethnicgroup from a range of communitiesthat originated in India. Each has itsown dialect and traditions. ThoughRoma are concentrated in post-communist countries, an estimated 1million live in the USA.

In a major effort to help one ofEurope's largest, poorest and fastest-growing ethnic minorities, leaders ofmany Central and Eastern Europeancountries are vowing to address theirproblems. Some of the pressure iscoming from Roma activists.International organizations also arecalling attention to the issue. TheWorld Bank and Open SocietyInstitute are launching a 10-yearinitiative today aimed at monitoringeight countries that have pledged toimprove their treatment of the Roma.

But the primary driver is theEuropean Union, which recentlyopened its doors to former Soviet bloccountries. Romania and Bulgaria areon track to join in 2007.

Though EU membership confersbenefits, such as access to marketsand more opportunities for foreigninvestment, it also carriesresponsibilities. With 80% of Europe's

Roma living in new or candidatecountries, last November's EU reportcalled their plight a "litmus test of ahumane society."

But the effort to integrate Romawon't be easy. "Mentalities have tochange on both sides — of themajority (population) and of theRoma," says Ilie Dinca, president ofRomania's National Agency for Roma.

Difficult history

To Americans, Romania's record ondiscrimination sounds familiar: LikeU.S. blacks, Roma were enslaved bylandowners and clergy until the mid-19th century. Along with Jews, theywere deported to concentrationcamps during World War II.

History has left a devastatingimprint. Romania is home to as manyas 2.5 million Roma. According to theWorld Bank and Open SocietyInstitute, poverty rates range fromfour to 10 times that of Europeans.Nearly 40% of Roma live on as little as$2.15 a day. In Bulgaria where therecould be as many as 800,000 Roma,89% have never gotten past primaryschool. Life expectancies regionwideare about 10 years lower for Romathan for majority populations, the EUreport says.

Though the Roma largelyabandoned their nomadic ways afterWorld War II, Western Europeancountries are attracting more Romafrom post-communist countries,

Help wanted for the EU'spoorest ethnic minority

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many seeking political asylum.Among the reasons: The aid offeredthere as immigration cases work theirway through the courts is more thanwhat a Roma might receive at home.

In a part of the world where weakeconomies have forced nearlyeveryone to struggle, many Europeanssee the Roma as a danger to stretchedresources, says Gheorghe Sarau, aRomanian Ministry of Education andResearch official.

It isn't clear how Roma, particularlythose who avoid outsiders, willrespond to outreach efforts. The EU,for instance, has condemned thecustom of child marriages. But insome Roma communities, tradition isstrong. Tranca opposed the marriagein November of her son, Alexandru,17, the oldest of her five children. Buther opinion was irrelevant. "Inmatters of marriage, the elders havethe last word," says Tranca's husband,Mladin, 34.

Local attitudes about Roma also areproving hard to change. Europeanscomplain that the Roma don't bathe,have too many children and refuse tosend them to school. There arereferences to drugs, prostitution, theblack market. Just about everybodyhas a story about pickpockets.

"The first thing that comes into mymind is, 'They're dirty.' This is amentality that we grew up with," saysMonica Branzan, 23, a student at theUniversity of Bucharest.

Perhaps more than oldergenerations, Branzan and severalclassmates concede a certainhypocrisy on their part. The Roma"seem not to want to change," saysCristina Mustea-Stanca, 22, anotheruniversity student. "The problem is,

we want them to be normal on our terms."

The students acknowledge thattheir views are based on limitedexperience. Textbooks offer littleabout the Roma. Aside from whatthey see in public, Europeans mostlyget information through the media,which tend to focus on crime orseemingly archaic Roma traditions.

To the extent that the stereotypesare rooted in truth, they are a productof history, say activists Delia Grigore, aprofessor at the University ofBucharest and founder of anorganization for Roma youth, andCostel Bercus, executive director ofRomani Crisis.

They argue that crime is a functionof poverty, not ethnicity. Bercus saysthe centuries-old custom of earlymarriages began as a survivaltechnique: It was a way to safeguardRoma girls from being raped by their owners.

Marioara Tranca notes that theRoma don't have a lock on antisocialbehavior. "Both Romanians andGypsies have bad people in theirpopulations," she says.

Prices of education

In Romania, one persistentassumption among non-Roma is thatRoma families don't value education.

According to the World Bank, 70% to80% of Roma in Europe have less thana primary school education. Fewerthan 1% go on to higher education.The main reasons, says an OpenSociety Institute report in 2000, arethat the isolation of Roma makes itdifficult for their children to get toschool, seasonal work opportunities

force them to move, or the childrenfeel excluded in the classroom. To thatend, programs have been developedaimed at improving the classroomclimate and training teachers incultural sensitivity.

But Roma teens suggest theproblems go much deeper.

Nelu Fieraru, 18, of Foltesti says hedropped out after the fourth-gradebecause his grandparents wanted himto beg or steal. If he didn't make anymoney, "they wouldn't let me comeback home," he says.

Now, Fieraru is in the eighth grade,participating in a program in theindustrial city of Galati created twoyears ago to give Roma dropoutsanother chance. In addition to English,math and other academic subjects,they're learning food-industry skills.

Viorica Gotu, Galati County's adviseron Roma issues, sees a big differencein the students, most of whom camefrom villages in the poorest parts ofRomania. But of the 30 students whoenrolled, 11 left — all girls. Theproblem, she says, is that the girlswere being teased in their villagesbecause they weren't married.

Still, Gotu envisions long-termsuccess: The remaining two girls are"going to succeed," she says. "The girlswho go home will be beaten by theirhusbands and have a lot of children.They're going to see the others aresuccessful and will make sure thattheir children stay in school."

Contributing: Michelle Kelso andAndreea Cipca

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AS SEEN IN USA TODAY MONEY SECTION, TUESDAY, APRIL 27, 2004, PAGE 1B

Reprinted with permission. All rights reserved. Page 7

EU expansion brings USA opportunities

By Noelle KnoxUSA TODAY

VILNIUS, Lithuania — Walking pastthe chic Roberto Cavalli clothingboutique, the trendy restaurants andthe new cars parked on the street, it'seasy to forget what life was like here just 15 years ago underCommunist rule.

And that's a risk for U.S. businessesthat are counting down to May 1,when eight former Soviet-bloccountries and two Mediterraneanisland nations join the EuropeanUnion. The new borders of this tradeand legal alliance will encircle some450 million people with economicoutput nearly rivaling that of the USA.

It's easy to imagine millions ofEastern European consumersdreaming of owning a mobile phoneor computer, and to forget that mostcan't afford designer clothes and grewup shopping communist-style. At anearby minimarket, potato chips arestacked on a beer cooler, but thesaleswoman at the cooler sells onlybeer, no chips. That's another clerkand another line. Want a grocery bag?That's extra.

The contrast between communismand capitalism is often stark becauseit is unexpected, and it is theunexpected challenge that can laywaste to some of the best businessplans. Ask Williams Cos. about itsdisastrous deal for Lithuania's state-run oil refinery, which took two yearsto buy and three years to sell, andtook down several politicians.

The expansion of the EU will be thebiggest social, political and economicexperiment since the union wascreated in 1957. Across the Atlantic,the opportunities and challenges forU.S. businesses will also beunprecedented.

To find out what the expansion ofthe EU means for Americanbusinesses, USA TODAY visited four ofthe 10 new EU countries — Poland,Hungary, the Czech Republic andLithuania — to seek lessons learnedby dozens of local executives fromsuch U.S. companies as Coca-Cola,General Motors, General Electric,Microsoft and Kraft Foods.

The others joining the EU areEstonia, Latvia, Slovakia, Slovenia,Malta and the Greek half of Cyprus.

Since the collapse of the IronCurtain, hundreds of U.S. businesseshave invested almost $145 billion inthese Eastern European countries (seechart). The U.S. companies that movedin as the Russians moved out haveseen revolutionary changes in thepeople and cultures of Eastern Europe.

"I would never see such thingsagain," says Romuald Rytwinski,general director of General Motors'plant in Poland. "Freedom was thebiggest change we had in all my 50 years."

If the changes ahead seem moresubtle, it would be a mistake tounderestimate their impact. Forseveral years, the 10 countries havebeen preparing to join the EU.Hundreds of laws — covering foodsafety to water quality to workingconditions to import/export taxes —will be standardized across 25

countries. By the end of the decade,most will use the same currency, theeuro, now used in a dozen nations.

"A lot of the changes were painfulbecause the government was underhuge pressure to commonizeeverything by May 1," says Rytwinski."Sometimes we had problems withthe quality of the law or it wasimplemented too quickly with notransition period. . . . It's a lot ofchanges, but it's the last batch of changes."

There is no doubt a bigger EU willhave more muscle in business andpolitical arenas. The organization hasalready shown it is not afraid to takeon U.S. businesses or the Bushadministration. Last month, the EUfined Microsoft more than $600million for abusing its market power,and last year, the alliance forced theBush administration to reverse itspolicies protecting the U.S. steel industry.

Among the early casualties of alarger EU: poultry farmers.

U.S. chicken and turkey exports tothe new EU members will be banned,costing U.S. farmers about $50million, or 3% of poultry exports. TheEU shut the door to U.S. poultryexports in 1996, claiming the chlorinethat U.S. farmers use to rinse the birdsand clean utensils can cause cancer.The USA believes the rinse is lessharmful than the microbes it kills.

"Overnight, we're going to lose all ofthese markets, and it's going to provedevastating to the U.S. poultryindustry," says Jim Sumner, presidentof the U.S. Poultry & Egg ExportCouncil.

10 new members will alsocreate business challenges

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In four days, the European Union will widen its borders to take in 10 new countries,the biggest expansion in the alliance's 47-year history. The EU will have 25 members,making the trade and legal alliance a more formidable ally or adversary in businessand politics. The EU and the USA are each other's biggest trading and investment

partners. The new countries joining the EU will add 75 million people to the allianceand open new markets, with uniform rules and regulations. Here are some factsabout of the countries joining the EU and how the larger alliance will rival the USA.

By Alejandro Gonzalez, USA TODAY

Entering the European Union

Entering May 1

Member nations, year of entry

Sources: Population figures and import/export industries from the CIA World FactBook; GDP per capita, unemployment figures, U.S. cumulative investment figures fromthe U.S. Department of Commerce, European Union, U.S. Bureau of Labor Statistics, U.S. Treasury Department, World Book Encyclopedia, Periscope; all data on Cyprus andMalta from the CIA World FactBook, and USA TODAY

1

2

3

5

6

8

9

4

7

10

Russia

Finland

Sweden

Norway

Ukraine

BelarusRussia

Romania

Moldova

Turkey

BulgariaBlack Sea

Greece

Cyprus

MaltaMediterranean Sea

A F R I C A

Croatia

Bos.Herz. Yugo.

Mac.

Italy

AustriaSwitz.

Germany

Denmark

Neth.

Belg.

France

SpainPortugal

U.K.Ireland

North Sea

Baltic Sea

Alb.

1957BelgiumFranceGermanyItalyLuxembourgNetherlands

1973DenmarkIrelandUnited Kingdom

1981Greece

1986PortugalSpain

1995AustriaFinlandSweden

Entering in 2007 or laterBulgariaRomaniaTurkey

Applications pendingCroatiaFormer YugoslavRepublic ofMacedonia

1 - 2003 estimate; 2 - 2002 estimate; 3 - 2001 estimate

EU vs. USAHow the 25-member EuropeanUnion compares with the USA:

UnemploymentEU

USA9.0%

5.7%

InflationEU

USA2.0%2.3%

Military spendingIn billions

EUUSA

$163$409

Major exports

European UnionAutomobiles

7%Medicine

4%Telecommunications equip.

3%

USAElectronic components

7%Aircraft

6%Automobile parts

4%

Personal data

SloveniaCapital: LjubljanaPopulation: 1.9 million1

10

GDP per capita: $9,900 2

Unemployment: 6.4% 2

U.S. investment: $3.2 billion

Size: 7,828 square miles, slightlysmaller than New Jersey.

SlovakiaCapital: BratislavaPopulation: 5.4 million1

9

GDP per capita: $12,400 2

Unemployment: 17.2% 2

U.S. investment: $5.4 billion

Size: 18,860 square miles, abouttwice the size of New Hampshire.

MaltaCapital: VallettaPopulation: 400,400

7

GDP per capita: $17,200 2

Unemployment: 7% 2

Size: 122 square miles, less thantwice the size of Washington, D.C.

PolandCapital: WarsawPopulation: 38.6 million

8

GDP per capita: $5,1001

Unemployment: 18% 1

U.S. investment: $68.3 billion

Size: 120,731 square miles,slightly smaller than New Mexico.

LatviaCapital: RigaPopulation: 2.4 million1

5

GDP per capita: $3,500 2

Unemployment: 7.6% 2

U.S. investment: $2.9 billion

Size: 24,938 square miles, slightlylarger than West Virginia.

LithuaniaCapital: VilniusPopulation: 3.6 million

6

GDP per capita: $4,600 2

Unemployment: 11.3%2

U.S. investment: $4.6 billion

Size: 25,174 square miles, slightlylarger than West Virginia.

HungaryCapital: BudapestPopulation: 10.1 million

4

GDP per capita: $7,2001

Unemployment: 5.8% 1

U.S. investment: $28.9 billion

Size: 35,920 square miles, slightlysmaller than Indiana.

EstoniaCapital: TallinnPopulation: 1.4 million

3

GDP per capita: $4,9002

Unemployment: 11.3%2

U.S. investment: $4.4 billion

Size: 17,462 square miles, slightlysmaller than Vermont and NewHampshire combined.

Czech RepublicCapital: PraguePopulation: 10.2 million

2

GDP per capita: $8,580 1

Unemployment: 10% 1

U.S. investment: $39.2 billion

Size: 30,451 square miles, slightlysmaller than South Carolina.

Cyprus (Greek half)Capital: NicosiaPopulation: 771,657 1

1

Greek Cypriots voted down a United Nations-backed plan Saturdayto create a united Cyprus. The result means only the internationallyrecognized Greek Cypriots will join the EU, not the Turkish Cypriots.

GDP per capita: Greek area: Purchasingpower parity - $15,000 3; Turkish area:Purchasing power parity - $6,000 2

Unemployment: Greek area: 3.3%;Turkish area: 5.6% 2

Size: 3,572 square miles, a little morethan half the size of Connecticut.

Percentage of peoplecompleting higher educationor equivalent, 2002:

Education

EUUSA

20.4%26.7%

Number of personal computersper 100 people, 2002:

Personal computers

EUUSA

3166

Number of mobile phones per100 people, 2002:

Mobile phones

EUUSA

7449

Number of Internet users per100 people, 2002:

Internet users

EUUSA

3355

States exporting to EUTop 10 states exporting to the European Union in 2002:(in billions of dollars)1. California2. New York3. Texas4. Washington5. Massachusetts

$18.6$9.5$9.5$7.9$6.5

6. Illinois 7. New Jersey 8. Ohio 9. Michigan10. Pennsylvania

$6.0$5.1$4.7$4.3$3.7

Source: Census Bureau, Foreign Trade Division

Population

EUUSA

455291

In millions

Gross domestic productper capita

EUUSA

$19,700$35,700

Gross domestic product

EUUSA

$8.97$10.42

In trillions

(2003 data)

GreekTurkish

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But the majority of U.S. businessessee dollar signs when they look atEastern Europe with its cheap labor,hungry consumers and standardizedrules and tariffs.

Location, location

When GM came to Poland, theautomaker chose the town of Gliwice,185 miles south of Warsaw.

"Think about putting a place close toa city with a local university wherethey can pick up a good, skilledworkforce," Rytwinski recommends.

The area, which has six universitiesand technical schools nearby, wasonce one of Poland's richest. But afterthe government shuttered thedilapidated steel and coal mills, itbecame one of the poorest.

When the GM plant was finished in1998, more than 20,000 peopleapplied for the 2,000 jobs. Still, one infive people are out of work.

Rytwinski, who used to work at thestate-run auto factory, building "20-year-old cars," says "attitude" was theprimary criteria for hiring workers forthe GM plant, which builds two Opelmodel cars, the Agila and Astra.

All the U.S. executives said workertraining was critical to success.

At the GM plant, this has meantconstantly focusing on discipline andfollowing procedures.

"Poles are very creative," Rytwinskisays, which is good for the employee-suggestion program, but bad on theassembly line.

"We have a continuousimprovement process, and you can'timprove something that is not

standardized," he says. "This was aproblem in the beginning."

Last year, the plant tied for secondin a prestigious German qualitysurvey of 3-year-old cars.

More than one generation hasgrown up in Eastern Europe thinking"sales and marketing" is a sign sayingsomething is in stock.

Shortages were so much a part ofeveryday life that in the Museum ofCommunism in Prague, CzechRepublic, there is a small display of astate-run food shop with a near-empty counter and a few rows of canson the back shelf.

The museum is behind the PalaisSavarin casino, across from aMcDonald's. The public square wherethe "Velvet Revolution" toppled theCzechoslovakian government in 1989has turned into one of the city's mostpopular shopping areas.

Christopher Hill, U.S. ambassador toPoland, remembered a young couplehe knew during his tour in the '80s,when he was an economics officer.They put their name on a waiting listfor a new car. The day the car arrived,the couple hurried to the dealership at 7 a.m.

They didn't get the color theywanted, he recalled. But they weren'tupset that they had gone early: Theygot to choose the defect they mindedthe least -— the passenger door didn't lock.

With rising competition, fromcarmakers to computer companies,the art of selling becomes moreimportant.

"Eastern Europe is missing the salesand marketing skills," says Jan

Muehlfeit, vice president for Microsoftin Europe, the Middle East and Africa,who was born and raised in the CzechRepublic. "They were not educatedduring the previous era. In a centrallydriven economy, there is no need tosell or market products."

Class is now in session

Microsoft's founder and chairman,Bill Gates, traveled to the region inJanuary to meet with big customersand government officials. He alsosigned deals for two "UnlimitedPotential" training programs toincrease computer skills in schools inthe Czech Republic and Slovakia. (Thecompany will offer its technology atlow prices.)

"There is still quite a huge appetitefor investment in (technology) in all ofthe East European countries," saysMuehlfeit. "We are quite optimistic."

Microsoft is working on a softwaresolution to help customs officials inthe Czech Republic track exports. Thesoftware giant is working with Polandon a secure infrastructure for e-procurement, filing taxes online andother government transactions.

Microsoft's lessons in sales andmarketing also stress the need toprotect your trademark.

"Software piracy was a big, bigchallenge," Muehlfeit concedes.

The company has teamed withgovernments to crack down onpirates, and he says, "The situationhas dramatically improved. In theCzech Republic, Slovakia and Slovenia,piracy rates are close to those inWestern Europe."

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Corruption still a problem

But piracy and corruption are stillformidable in the region.

Earlier this month, Polish PrimeMinister Leszek Miller said he wouldresign the day after Poland joins theEU. His party has been dogged byscandal after scandal, including oneover the country's 12-yearnegotiations to join the EU.

In Lithuania, one in three studentsadmitted to bribing a teacher, says aDecember survey by the SocialAnalysis Group. Lithuanian PresidentRolandas Paksas was impeached thismonth for dealings with a Russianbusinessman with alleged links toorganized crime.

Officials at EU headquarters inBrussels will be monitoring the newcountries closely — especially when itcomes to spending the 25 billioneuros in aid for the 2004-06 budget cycle.

A lot of that money will be spent onimproving the critical trade links ofroads, railways and ports.Infrastructure, or lack of it, was aproblem that almost all U.S.companies have grappled with.

There are only three main roadsacross Poland, and they arenotoriously crowded, damaged and dark.

It used to take Piotr Czarnowski upto two hours to drive six miles on oneof the main roads through Warsaw.The president of First Public Relationsused to write off an entire day if hehad to visit a client on the north sideof town.

He points to a new 24-hour KFCfast-food restaurant on one side of the

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Coca-Cola Gabor Bekefi region manager, Hungary, Czech Republic and Slovakia

"Companies should find out what isvaluable in that country's individuals.For example, Hungarians are veryproud of their nation, very proud oftheir history, and they are goodworkers. Sometimes companies don'tspend enough time, and they seeonly the difficulties. Some nations aremore stubborn. And (the companies)don't spend enough timeunderstanding the culture andbackground and may develop anopinion that is not reflecting the truevalues of that nation. We've seen thatsometimes when an aggressivecompany comes into the country andwants to change the employees to itsown (image)."

General Motors Romuald Rytwinski General director of General Motors'plant in Poland

"Think about putting a place closeto a city with a local university wherethey can pick up a good, skilledworkforce. The second thing, I wouldnot concentrate on the Warsaw area.I would try to go look for other citiesand discover my own land. . . . Iwould also look carefully atinfrastructure, especially roads.Progress with development is notfast enough."

General Electric Istvan Szini chairman of the board of GE Hungary

"For all of us, it is important thatthe local characteristics of thesecountries are not going away. If youwant to find out, should it be Polandor Hungary, you have to compare theworkforce, what is theunemployment rate in one or theother, the availability (of workers)because of the huge presence ofcompanies like GE and others, there'sa lack of available workers in thearea, education, infrastructure, theseare the things you have to compare.Each government tries to offersubsidies or grants to try to attract(businesses), they are more or lesssimilar and have to be harmonizedwith EU rules so they now look alike.Most probably, if the quality of theworkforce productivity is good, thenit is really worth looking around this region."

Microsoft Jan Muehlfeit vice president for Europe, the MiddleEast and Africa

"Advice No. 1: It used to be kind ofone bloc; it's not anymore. Thecountries are very specific. You needto learn really specific (information)about the culture. Advice No. 2:Invest in sales and marketing andlocal skills, if you want to have areally successful operation."

USA TODAY asked these executives what advice they would give to a U.S.company thinking of investing in the Eastern European countries entering theEuropean Union on May 1. Here's what they said:

Advice for investors

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road and jokes, "That's for people whohad to spend all night sitting intraffic." (On a good day, he can nowdo that six-mile drive in as little as 15minutes, thanks to improvements this year.)

After May 1, trucks should speedacross borders, because inter-regionaltariffs will disappear. These countriesalso will adopt the EU tariffs for U.S. exports.

The results will vary depending onthe product and the importingcountry. The tariffs on U.S. exports toLithuania, for example, will fall by anaverage of 15%.

"We've been using orange juicefrom outside the EU, so that will bemore expensive. But other ingredientswe've been buying — labels, caps —from Slovakia, those import dutieswill go away, so you can see it's amixed bag," says Gabor Bekefi, theregional manager for Coca-Cola'soperations in Hungary, the CzechRepublic and Slovakia.

In the late '80s, Bekefi started hiscareer as a clerk in the state'simport/export company, which usedto trade Hungarian wine for hardcurrency to buy Coke. "There werewhole industries — cigarettes, spirits

and soft drinks — with internationalcompanies that helped Hungary earnhard currency" by trading products,Bekefi says.

Hungary is now headquarters for allof Coke's operations in Central andEastern Europe, which include 22plants and 10,700 employees.

As the EU rules and regulationsspread east, they will touch almostevery part of Coke's operations in theregion, including water treatment,recycling, electricity, advertising andlabor contracts.

Cheap labor, for now

There are widespread fears inWestern Europe of a flood of workersfrom the East seeking jobs or higherwages. All but three current EUmembers have proposed banningworkers from the new nations for upto seven years. (Free immigration inthe western countries is a basic EUright.) Only the United Kingdom andIreland say they will open their labormarkets; Greece is undecided.

But Istvan Szini, national executivefor GE Hungary, is quick to say that EUexpansion is good for Europe and it'sgood for GE. "I ask you, where in theU.S. could you create anything like

(GE's call center) to provide 14languages with services to Europe ifnot somewhere in Europe?" he asks.

GE bought Hungary's state-ownedlighting company in 1989. Now, GE isthe country's largest foreignemployer, with 14,000 workers. Itexports 97% of its Hungarianproduction, a small part of which goesto the USA.

Szini says, "The Hungarian examplewas not about closing anything in theUSA and moving it to Hungary, not atall, but expanding in a country wherethe productivity was satisfactory andthe cost much lower."

Looking around Budapest, thecapital of Hungary, it's hard to believeEastern Europe will remain a low-costproduction zone for long. A new-model Mercedes taxi from the airport— the driver has an onboardcomputer, a handheld PDA and amobile phone — passes billboardsadvertising the latest DVD movies, aBurger King restaurant and anAmerican Express travel agency. The20-minute trip downtown costs about $25.

"Fifteen years is nothing in the lifeof a nation, and how many changeswe've gone through," says Szini.

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By Larry Copeland, Martin Kasindorf and Charisse JonesUSA TODAY

MIAMI BEACH — Noel and Zoe Very, who live in Paris,were strolling amid the palm trees draped in Christmaslights looking for bargains. Noel Very, 58, says he found aSony digital camera that cost 25% less than at home, alongwith much cheaper clothes and electronics. "The dollar isvery cheap," he says. "It's a really good time to buy."

The U.S. dollar recently hit a record low against the euro,a 12-year low against the British pound and a nearly five-year low against the Japanese yen. The dollar has dropped13% against the euro since the spring and 40% sinceJanuary 2001, when the euro came into widespread useacross much of Europe.

The weak dollar may be hurting Americans living andtraveling overseas, but it is luring waves of foreign touriststo the USA. Some are drawn by the bargains. Some arefinally making long-desired visits because it's soaffordable, while repeat visitors are finding some of thebest deals in recent memory.

U.S. cities popular with international travelers areswarming with tourists snapping up everything fromperfume, clothes and jewelry to computers, eyeglasses andcosmetics. "It's incredible — a suit that would cost $800 inthe United Kingdom, you can get for $300 here," saysCathy Keefe, spokeswoman for the Travel IndustryAssociation of America. "We're like the Filene's Basementof travel destinations."

Eat your heart out as you ponder the deal that HildaChan says she got on a top-of-the-line Apple iPod digitalmusic player. Chan, 27, who owns a restaurant in Jakarta,Indonesia, says she bought it on Amazon.com for $600 (6

million rupiahs). If she had purchased the device inJakarta, it would have cost 10 million rupiahs, or $1,000.She also snapped up "a laptop, other computer stuff — all alot cheaper" than back home, she says.

Even in expensive midtown Manhattan, internationaltourists are bragging about the finds.

Joanne Saltmarsh, 47, a nurse visiting from Brighton,England, interrupts her marathon shopping jaunt in NewYork to show off a Calvin Klein blouse she got for $29 thatwould have cost 25 pounds — almost twice as much —back home. She's marveling at how much stronger thepound is against the dollar just since September.

"When I changed some traveler's checks at the airport, Igot $1.92" to the pound, she says, lugging shopping bagsup a broken escalator at Macy's. "I came out in September,and I only got $1.78." She has scored bargains on jewelry,Christmas ornaments and perfumes.

The euro, the currency of 12 nations in Western Europe,closed Tuesday at $1.33 against the dollar. Analysts expectthe dollar to continue its slide against the euro next year.The dollar is also weak against the Japanese yen.

The number of overseas visitors from January throughAugust from countries excluding Canada and Mexico is up18% over the same period last year, Keefe says. "Thecombination of pent-up demand for long-haul travel andthe fantastic exchange rate has fueled this amazingrecovery that we're seeing" in tourism, she says.

The bargain-hunting tourists aren't the only onesbenefiting. International tourism is boosting cities andstates that have large shares of the market.

v In New York, overseas visitors are powering the city'srecovery from the lingering economic damage of the Sept.11 attacks.

v International tourists are helping Las Vegas fend offgrowing competition for gambling dollars from AmericanIndian tribal casinos in California and other states.

v On the West Coast, Japanese tourists are back afterthey cut back drastically on U.S. visits since the terrorattacks three years ago and the yen dropped against the dollar.

How much isthat in euros?As the dollar continues to fall, foreignvisitors are flocking to the USA to enjoythe incredible bargains

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v And those bargain hunters with accents are helpingFlorida recover from a record-breaking series of hurricanesthis year.

Last year, most international visitors to the Miami areatold survey-takers they came to the Sunshine Stateprimarily because of the warm weather, says WilliamTalbert, president and CEO of the Greater MiamiConvention and Visitors Bureau.

"This year, the most-liked feature for internationalvisitors in the first nine months of 2004 is shopping," hesays.

That was borne out last week by USA TODAY reportersinterviewing foreign tourists in four cities.

Manhattan bargains

From the souvenir shops in the shadow of the EmpireState Building to upscale stores along Madison and Fifthavenues, tourists from France, Italy, Japan and elsewherefinger ponchos, sniff perfumes and dole out cash forpurchases they say would have cost considerably moreback home.

William Unsworth, a London police officer, was visitingNew York City for the first time in 30 years and brought histhree daughters for their first look at Manhattan. But of allthe attractions they visited — from the giant Christmastree at Rockefeller Center to Central Park — they may havelingered longest at a monument to shopping: Macy's inHerald Square.

"We were there for five or six hours because it was aone-day sale," says Unsworth, 46, standing with his familyin the crowded aisles of the famed toy store FAO Schwarz."I spent almost $1,000 in there. The pound to the dollar isvery strong."

New York City is the top destination for foreign travelersvisiting the United States. The city is enormously popularwith Britons.

While Unsworth and his family came to see the city andcelebrate one daughter's 19th birthday, he says the weakdollar also was a factor. There are bargains to be hadwhether or not they're related to the conversion rate,however. That was apparent as soon as the Unsworthsbooked their lodging. They were paying just $363 for fivenights at New York's Helmsley Hotel. "That's a four-star

hotel," he says. "In London, that would've been a lot ofmoney. You'd pay about 100 pounds a night ($960 for five nights)."

Nevada's gambling businesses are facing competitionfrom tribal casinos, so the state has done more to attractforeign travelers and other visitors. The NevadaCommission on Tourism opened offices this year inBeijing. It already had offices in Japan, Britain and South Korea.

Nevada is on track for a record 50 million visitors thisyear, and a record 37 million are expected in Las Vegas,topping the city's previous record of 35.8 million in 2000.Erica Yowell, a spokeswoman for the Las Vegas Conventionand Visitors Authority, says that 8%-10% of them comefrom other countries.

'Europe is very expensive'

Among them are H.S. Chadha, 52, a government workerin Chandigarh, India, and his wife, Tajinder, 50. They arevisiting the USA for a month. He's wearing a black turban,and she's in a flowing Indian dress as they walk on theStrip in Las Vegas. "One dollar is 46 rupees," says H.S.Chadha. "The euro is 55 rupees. The pound is 80 rupees. Sowe are able to afford to come to the United States, whilewe can't afford the U.K. Europe is very expensive for us."

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Weak dollar helps lure tourists from abroadForeign travelers emboldened by swelling currencies are flocking to U.S.tourist spots. A look at travel trends for the third quarter of 2004:

Sources: Commerce Department, McCarran International Airport, Orlando-Orange CountyConvention and Visitors Bureau, NYC & Company

By Marcy E. Mullins, USA TODAY

Year-to-year percentage increasein travel to the USA from thefollowing destinations:

Las VegasVirgin AtlanticAirways’ passen-ger volume fromLondon was up55% January-June.Japan Air Lines re-corded a 31.3%increase.

New YorkThe city is projected to attract more than5.3 million overseasvisitors this year, upfrom the 5.1 millioninitially projected.

OrlandoThe home of the Disney theme parks expectsinternational visitors to increase 7.1% this year to2.5 million, the first increase since 2000.

13.6%

10.9%9.7%

7.3%5.3%

3.8%

9.7%

Mexico Canada All Over-seas1

UnitedKingdom

WesternEurope

Japan

1 — all countries exceptCanada and Mexico

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MGM Mirage hotels in Las Vegas,which include the Bellagio, Mirage,MGM Grand, Treasure Island, New York-New York and Boardwalk,have seen a "steady increase in the international market over thelast year," spokeswoman JennMichaels says.

Walking between hotels with herhusband and three children, ChuaShin Noan, 43, a Singapore financialmanager, was on a package tour thefamily planned in September. "I'mbuying things," the woman says, "butbasically I'm not here to shop. . . . Iwanted to bring the children to seethe Grand Canyon."

When she visited the USA 17 yearsago, she says the U.S. dollar was at 1.9to one Singapore dollar. Now it'sdeclined to 1.6, and she notices thedifference. She was wearing boots shebought at a Bostonian factory outlet inLas Vegas. A son wore newTimberland shoes.

Beverly Hills: Half-price clothes

The highlight of this year's holidaydecorations along Rodeo Drive inBeverly Hills are 20 Baccarat crystal

chandeliers, each worth $50,000 — a$1 million installation provided freeto the city by Baccarat. The high-fashion stores along the fabled streetinclude Hermes, Louis Vuitton,Versace and Giorgio Armani. It's aparadise for high-end shoppers fromaround the world.

Rodeo Drive is out of the price rangeof Rosemary Watkins, 57, a housewifevisiting from Caterham, England, withher daughter, Louise Kirk, 29, aLondon software sales executive. Theyare just window-shopping. But theyalready made a killing at the BeverlyCenter shopping mall in Los Angeles, afew miles east. And they're eachsporting part of the bounty: brand-new DKNY jeans.

In southern England, Watkins says,the jeans cost 80 pounds — $156.They paid $29.25 — just 15 pounds.Kirk bought a Guess jacket for $97.50(50 pounds) that would cost $195(100 pounds) at home.

"Everything here is about half-pricefor us, even food," Kirk says.

Nearby, Beverly Hills' official"ambassador" greets shoppers in 100

languages. Gregg Donovan, an actorpaid by the Beverly Hills Chamber ofCommerce to wear a red tailcoat andto glad-hand shoppers, sees it all.

He says the Japanese, frightened offby the Sept. 11 terror attacks, arecoming back. "The Japanese, I seetheir bags from Louis Vuitton," hesays. "Russians, Koreans, even theSaudi Arabians are coming back. Thesense of danger in America isdisappearing."

The 86-room Luxe Hotel, the onlyhotel on Rodeo Drive, is a trendyboutique with rooms starting at $259a night. It's popular with fashionexecutives from Italy and France. Andlately, many Australians have beenstaying at the Luxe. Paul Birchall, thehotel's general manager, is Australian.Now, 40% of his business is Australian.

"The Australian dollar is thestrongest it's ever been," he says."Everything's strong against theAmerican dollar, so people arecoming. The hotel is constantly full."

Tourism is the No. 1 industry inFlorida. Last year that meant $53billion for the state. The boom ofinternational tourists is helping theSunshine State recover from thisyear's hurricane season, which sawdomestic visitors dip 4.8% in July,August and September comparedwith 2003. During that same period,when hurricanes Charley, Frances,Ivan and Jeanne all hit within 44 days,international visitors rose 8%.

Since domestic visitors account forjust 8% of the total, overall tourismstill fell from 19.9 million through thethird quarter of last year to 19.1million this year. But the foreignersare fueling a strong recovery. "Thiswinter, from everything we'rehearing, tourism is expected to be

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What tourists found as they shopped in the United States compared with theprices in their home countries (prices converted to U.S. dollars):

Bargains for shoppers

Item U.S. Home countryApple iPod digital music player $600 Indonesia, $1,000Five nights in four-star hotel New York Britain, $960

$362.88Guess jacket $97.50 Britain, $195Levi's jacket $30 Denmark, $90-$100Sport shoes from Footlocker $60 Denmark, $120-$130

Source: USA TODAY interviews with shoppers

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very strong," says Tom Flanigan,spokesman for Visit Florida, the state'stourism marketing corporation.

It's not just here in Miami Beach,either. "We just hosted 30 British touroperators, and they loaded up oneverything imaginable, from bluejeans to singing Christmas trees," saysD.T. Minich, executive director of theLee County Visitor and ConventionBureau in Fort Myers. "They really likethose singing Christmas trees."

Fort Myers, long popular withGerman tourists, is seeing an influx ofthem this year, Minich says. Theairport, which had direct flights toDusseldorf and Frankfurt, added anon-stop to Munich last month.

Sun, fun and cheap sneakers

Annette and Per Vesterholm andtheir son, Peter, are visiting fromNaestved, Denmark, and browsing atan American Apparel shop in South Beach.

"It's very cheap for us to come to theU.S. to buy stuff, especially this year,"says Peter, 17. He's been pricingsneakers, which he says sell for $120-$130 at home, and Levi's jeans, whichfetch $90-$100. Here, he can get theshoes for $60 and the jeans for $30, he says.

The Vesterholms spent a week inOrlando before heading to SouthBeach for some shopping. Theymarveled at some U.S. prices withoutbuying. Per Vesterholm, 45, who ownsa cleaning company, says he paid$130,000 for his C-class Mercedes-Benz at home.

"You can buy a Lamborghini here forthat, right?" Peter asks.

Dov Charney, president and CEO ofAmerican Apparel, says the companyhas noticed an increase in overseasshoppers in Miami Beach and Los Angeles.

Maria Serrano, 68, is a retired

handbag designer visiting SouthFlorida from Cantabria, Spain, for awedding and taking advantage of theweak dollar to do some shopping. "It'svery good for us now because theexchange is so good," she says.

She's shopping for computers andcameras and finding they're 20%-30%cheaper than back home. Serrano hasspent the morning fulfilling familyobligations.

"But this afternoon is going to be mytime," she says. "This afternoon, I willbe doing the shopping I want to do,finding all those wonderful bargains."

Kasindorf reported from Las Vegasand Beverly Hills; Jones from NewYork; Copeland from Miami Beach.

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Allyson M. Lowe is Director ofthe Pennsylvania Center forWomen, Politics, and PublicPolicy (PCWPPP) and AssistantProfessor of Political Science atChatham College. Previously, sheheld the Elsie Hilliard HillmanChair in Politics at Chatham. Shewas appointed by the OhioGovernor to serve on the Board ofTrustees at each of heruniversities and has an extensiverecord in university governanceactivities. Her research interests

include comparative politics, women and politics, theEuropean Union, political institutions, leadership andpolicy development. As a member of the political sciencefaculty, she offers courses in comparative politics, womenand politics, European integration, research design andinternational relations. As Director of the PennsylvaniaCenter for Women, Politics, and Public Policy, her workincludes campus programming, curriculum development,research coordination, and community outreach andengagement activities that encourage women'sparticipation in public life and public policy making.Originally from Ohio, she received her PhD and MA fromthe Ohio State University and her Bachelor of Arts fromMiami University.

Case Study Expert

Allyson M. Lowe, Ph.D.

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For more information, log on to www.usatodaycollege.com Page 17

The European Union's website for the United Stateswww.eurunion.org

(Extensive and accessible information about EU institutions, policies, and history. Includes EU Centers at universities across the U.S. and information on internships.)

The European Union's portalwww.europa.int

The Euro websitewww.europa.eu.int/euro/entry.html

Independent EU online news service www.europeanvoice.com

1. In drafting a new constitution, what werethe original goals? Can this process truly becompared to the US experience? How hasthe resulting draft lived up to ordisappointed expectations? What powersdo member states still want exclusively forthemselves and why? What reasons mightvoters have for rejecting the constitution?

2. Greater political and economic integrationdoes not necessarily produce culturalintegration or a greater sense of sharedidentity. How has this local v. Europeanidentity question played out in business(see "EU expansion") and in cultural (see"Roma") contexts? What role has the EUplayed in facilitating greater culturalintegration?

3. Describe the fluctuations in the exchangerates of the dollar and Euro since the Eurowas launched. Who benefits from a strongeuro and weak dollar, and who doesn't?What kinds of benefits do Europeansreceive from a strong Euro? How haveAmerican businesses benefited?

DISCUSSION QUESTIONS

ADDITIONAL RESOURCES

1. Some have argued that the EU is developing as a UnitedStates of Europe. In what ways might this be truepolitically, economically, or culturally? In what waysmight the EU develop as a superpower? Conversely,others have argued that EU will never be a federal statelike the U.S., but rather a truly new structure ofgovernance. What evidence is there to support thisargument and how might we assess these claims as the EU develops?

2. Should the EU continue to be wider (i.e., add moremembers) or should it focus on deepening (i.e., moreintegration of policies among existing members? Whatare the benefits and costs to these competing strategies forbuilding Europe?

3. In a Europe of 25+ member states, what will it mean to be"European" and to be one's own nationality, e.g., French, Polish?

4. What are the challenges to business and financial leadersin both the US and EU? How will political tensionsbetween the two powers affect business relations, if at all?

5. The EU has been described as suffering from a "democraticdeficit." How might European citizens participate moredirectly in the EU and better understand its processes and policies?

FUTURE IMPLICATIONS