Introduction

INTRODUCTION

Throughout the world, Europe has a reputation for its wealthy economy and for its history and tradition. In this section we would like to provide a brief overview of relevant numbers and facts to back this reputation and introduce the European Union as a central place of business.

General overview

The European subcontinent is not only home to more than 700 million people (with almost 520 million people who live in the EU), but also known for its rich and diverse culture, which left its marks in history with numerous cathedrals, palaces, vineyards, castles and beaches such as the Buckingham Palace in London, the Louvre in Paris or the Vatican Museums in Rome.

Europe is comprised of 53 countries, whilst 27 of which are EU member states. The 24 official languages spoken range among others from eastern Bulgarian, to southern Italian, from British English to northern Dutch or Baltic Estonian in the CEE region. However, most business communication is conducted in English.

Especially advanced economies such as Germany, Denmark, Sweden, the Netherlands, Switzerland, Finland, Iceland and Austria, the UK and Norway provide sustainable infrastructures for business ventures. However, this does not mean for other countries to be unprofitable FDI or export destinations.

Find out the most suitable starting point for your expansion plans in Europe

DOING BUSINESS IN EUROPE

Doing business in Europe is no easy endeavor. One must comply with the rules and regulations, standards and agreements. Establishing a business in Europe may also be very time-consuming due to all the bureaucratic hurdles one must go through (e.g., managing and protecting intellectual property rights, drafting employment contracts or fulfilling product requirements).

However, once entered, there are many benefits of doing business in Europe. Throughout the years, the EU reported trade deficits, being eager to import valuable goods. The almost 520 mio inhabitants are internationally focussed and seek the best quality products from all around the world. To differentiate, there are regions more prosperous than others, so prices have to be set accordingly (e.g., northern regions may be more advanced, while the south experienced severe setbacks due to covid-19 and the eastern regions are on the rise with well-educated workforces and growing middle classes).

U.S. companies for example, have high e-commerce standards, while EU companies lag far behind in this topic, opening up opportunities in tech hubs. Chinese economies of scale can use their advantage to achieve high profits exporting to Europe or even produce locally and reduce proximity, while Indian firms may have knowledge of advanced technologies that can be transferred by offering specialized services.

Whilst these are only few examples, we know foreign countries have far more to offer and the European market is highly appreciative of quality wares.

Contact us, if you are interested in a free consultation on how your company might fit into the European market.

THE EUROPEAN ECONOMY

Europe is operating as a single market (also: customs union) with 27 member states, which makes the EU a major world trading power. While the EU accounts for 15.6% of worldwide imports and exports, with just 6.9 % of the world’s population and a GDP of USD 15.6 trillion in 2019, it is the second largest global player in international trade.

 The EU’s economic policy focuses on the creation of jobs and the acceleration of growth by using financial resources more effectively, removing hurdles to investment and by providing visibility and technical advisory to investment projects.

Most of the EU’s member countries enjoy a healthy and prosperous economy with only some problem countries such as Greece, Spain and to some extent, France. 

An important indicator for economic as well as social dimensions within the EU is the unemployment rate which is overall at a record low of 15.1%. Economies such as Czech (2%), the Netherlands (3%) and Germany (with 3.1%) have excellent systems in place to ensure the well-being of their citizens. During the 2020 pandemic, those systems have proven to be indispensable and a necessary tool to prevent crises to displace economic as well as social structures.

THE EUROPEAN UNION

In 1995, the EU established the Schengen area in which member states can travel and transport goods, services and capital freely within most of the respective countries within the EU. The EU’s seven supranational decision-making institutions can issue standards and regulations, while also being able to interact with international organizations such as the World Trade Organization, the World bank or the WHO.

EU legislation is divided into primary and secondary law. The treaties (primary legislation) are the basis or ground rules for all EU action.

Secondary legislation – which includes regulations, directives and decisions – are derived from the principles and objectives set out in the treaties.

The goals of the EU are:

• promote peace, its values and the well-being of its citizens;
• offer freedom, security and justice without internal borders;
• sustainable development based on balanced economic growth and price stability, a highly competitive market economy with full employment and social progress, and environmental protection;
• combat social exclusion and discrimination;
• promote scientific and technological progress;
• enhance economic, social and territorial cohesion and solidarity among EU countries;
• respect its rich cultural and linguistic diversity;
• establish an economic and monetary union whose currency is the euro.

  The EU’s values are:

• Human Dignity;
• Freedom;
• Democracy;
• Equality;
• Rule of Law;
• Human Rights.

  Does this sound interesting to you? Start your venture by contacting us and receiving a free first consultation on your opportunities on the European market.