By Jonathan Reuvid
Whilst, in could 2004, the eu Union welcomed the accession of 10 new member international locations — essentially from former Communist primary Europe and the Baltics — the EU's inhabitants elevated via 20%. the ten Accession States extra a mixed inhabitants of seventy five million and GDP of greater than $430 billion. there's a enormous momentum in those economies due to the significant funding through worldwide businesses, the emergence of neighborhood SMEs and the restructuring of former nation enterprises. every one significant nation within the zone is a considerable business and patron industry in its personal correct and lots of of those nations are operating demanding to make amends for the remainder of Europe and feature proven, by means of strong monetary development, that they have got the aptitude to turn into extra vital gamers in Europe. This publication examines how the accession procedure has affected the commercial clients of the hot member states and the enlarged european as a complete. It specializes in the possibilities for international traders in all the 10 new participants, evaluating their financial surroundings and enterprise stipulations with these of the 15 longer-established member states. it's also a close review of industrial stipulations within the 3 newest admission applicants: Bulgaria, Croatia and Romania and information of key inward traders.
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Extra info for Corporate Investment Opportunities in the New Europe
Consumer non-durables EU25 and Eurozone production growth rates are sluggish in the consumer non-durable sector as well, being below 1 per cent in all three years. The sector is also less buoyant for EU10 member states. 7 per cent). 5 per cent), and in Latvia production growth had slipped in 2003 to 3 per cent. Only two other EU countries recorded production growth in consumer non-durables in 2004: Estonia (3 per cent); and the Czech Republic (2 per cent). 7 per cent (Czech Republic). Increases in 2004 output prices were more than twice as high as the EU25 and Eurozone averages.
28 FOCUS ON DEVELOPMENT IN THE EU BUSINESS ENVIRONMENT ______________ Taxation The harmonization of taxation rates within the EU is a hotly debated subject on which early resolution is improbable. The UK government, for one, has made it clear that it will not subscribe to standard rates regulated by the EU. Other countries are equally reluctant to yield ﬁscal control of their economies. 5 attempts to compare rates of corporate income tax (CIT), standard rates of value added tax (VAT), rates of withholding tax and residents’ personal income tax (PIT) for each of the EU10.
For that reason also, FDI in a smaller economy is likely to be doubly welcome, and investment incentives, insofar as there is freedom within the EU framework, and administrative facilitation will be tailored accordingly. Outlook for the EU15 The immediate outlook for the Eurozone and, indeed, all EU15 member states is that economic performance in 2006 will be marginally better than in 2005. 2 may prove optimistic, particularly if the US economy stumbles. Belatedly, the EU has recognized the threat posed by globalization, particularly from the rise of China’s and India’s economies.
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