THE expansion of the European Union could bring huge benefits to Worcestershire businesses, according to the Chamber of Commerce.

Ten new countries are waiting in the wings to join the EU in 2004, and debate rages over whether this will lead to a stronger, or weakened, union.

But Chris Harvey, from the Chamber of Commerce, Herefordshire and Worcestershire, said companies could benefit from the new, bigger European market.

"This is a great opportunity," he said. "Enlargement will help many of our businesses to expand into the markets of the new countries, where British goods and services are generally well regarded.

"Many businesses in the two counties are leaders in their fields, with innovative products and services in everything from food and drink to information technology."

Dr David Jack, managing director of Yamazaki Machinery, which employs 400 people at its Warndon site, in Worcester, agreed it could be good for business.

"In the last financial year, 10 percent of our machines were sold to the new countries waiting to join the EU," said Dr Jack.

"The year before, this figure was only seven per cent, so our dealings with these countries is growing. Anything that helps them to grow further will increase our business.

Expectation

"Clearly, there is an expectation their economies will develop when they join, and they will develop more quickly than the economies of countries already in the EU as they have a lot of catching up to do.

"This will no doubt involve renewing their equipment - a lot of it is quite old - and Yamazaki would hope to be providing the machinery."

Diane Rayner, policy development officer for the Federation of Small Businesses, said the enlarged EU would create a bigger range of markets for Worcestershire companies to trade with.

She said the FSB had already started building links with firms in the 10 countries set to join the EU, through its equivalent organisation in Europe, the European Small Business Alliance (ESBA).

The 10 new countries are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.