EU Enlargement and the Portuguese Economy Frank Barry*, Nuno Crespo** and M. Paula Fontoura*** * University College Dublin ** ISEG, Technical University of Lisbon *** CEDIN and ISEG, Technical University of Lisbon Abstract : Ten states, primarily from Central and Eastern Europe, will be admitted to the EU in 2004. The present paper assesses the competitiveness implications of this enlargement for Portugal. Four specific topics are considered: the trade and industry effects, the implications for Portugal’s ability to attract FDI, the likely levels and consequences of immigration from Central and Eastern Europe and the implications for Portugal’s budgetary relations with the rest of the EU. JEL Codes: F14, F15, F21, F22 Keywords: European Union, Enlargement, Portugal, Central and Eastern European Countries. Correspondence address: fontoura@iseg.utl.pt The financial support of the Fundação para a Ciência e a Tecnologia /MCT under SFRH/BD/6412/2001 (supported by the European Social Fund) is gratefully acknowledged. The authors are indebted to João Peixoto for helpful comments.