European Attractiveness Survey 2008

As the Ernst & Young european attractiveness survey enters its sixth year, we would like to warmly thank the thousands of decision-makers around the world who, over the years, have taken the time to share their thoughts with us.

As 2007 turned into 2008, investors saw decisive moves and unexpected shifts, a result of tension between the last five years’ bullish growth and the delicate balance of our planet. The subprime crisis cast its consequences across the world’s financial markets. Political instability in perennial growth markets in Asia, the Middle East and Latin America, was joined by persistently rising oil prices, soaring food and commodity prices, and resurgent inflation.

In the open world of foreign direct investment, Europe may be seen as a quiet giant. Protected by 50 years of prudent political construction, having succeeded in integrating new countries in its system, the European Union now enters an era of slower, possibly deeper transformation. Can it retain its 40% share of the world’s FDI (down from 51% in 2005), implement a new migration policy, and resolve its energy gaps? And can it put in place the revised, simpler, more focused version of the Lisbon Agenda to become the most competitive knowledge-based economy into the world?

The world is now an open playing field. The developed markets of Western Europe and the US are being challenged by competing equals. There is no denying that, as they look ahead, businesses are chasing growth in Asian consumers’ pockets. Europe and the US have to accept that these eastern competitors are pushing into their half. By the year 2050, the ‘emerging seven’ (Brazil, Russia, India and China, - the ‘BRIC’ economies - plus Turkey, Mexico and Indonesia) will have outgrown the ‘G7’ powers. By then, China will have become the world’s largest economy.

In this multi-polar scene, critical questions arise: is China heating up? What prospects for jobs in Western Europe? What will be the effects of the suprime crisis on the US, still the most powerful economic engine? Is the Euro-Mediterranean area the right extension of Europe’s slower playing field? How is Europe faring in these uncertain times? Can Europe meet the challenge? ...

As Ernst & Young’s European attractiveness survey enters its sixth year, we would like to extend our gratitude to the thousands of decision-makers around the world who, over the years, have taken the time to share their thoughts with us.

Pascal Cagni, General Manager and Vice President Apple Europe, Middle East and Africa

Olivier Quillet, Marketing Director, Nespresso

Point of view

"Europe remains a reference for us, both for training in research and for its networks. The trend is towards equalization. We are at the same level of skills, but there is still a difference in organization, and administration, and all that flows from it. In Europe, research is seen as a priority within the economy. Here, that is starting, but the infrastructure that goes with it is not yet there. It takes us four times longer to achieve results. The idea of a Euromed economic"

Habiba Bouhamed Chaabouni, Professor of Genetics, University of Tunis