With the enlargement of the EU to 27 member states in 2007, this thesis considers the transition process of Romania and Bulgaria from the fall of communism in 1989 to accession to the European Union in 2007. The research focuses on the political and economic reforms of Romania and Bulgaria, using a chronological approach, to explore the concept of EU impact on countries in transition. The thesis focuses specifically on the ideas of European conditionality and leverage, in order to answer questions on the importance of the EU’s external influence on these two countries, as well as discussing future implications for candidate countries in transition.