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and 6 % for Germany to 0.1 % for the Czech Republic

and Latvia.

 The above data show that EU companies are more

eager to set up foreign affiliates in neighbouring

countries, usually within the European Union, in

other European countries such as Switzerland andRussia, or in countries with historical and cultural

links, such as Brazil for Portugal. The USA is by far

the major destination for affiliates with headquar-

ters in the EU, which can be explained by the fact

that it is a very important market. The role of Asiaas a market for EU foreign affiliates has increased

substantially during the last few years, especially

in China and Japan.

B TWEB TE

Eurostat provides users with free access to all of its

databases, as well as PDF versions of its publica-

tions. To discover more, open a web browser on the

Eurostat home page at: c.europa.eu/Eurostatc.europa.eu/Eurostat .

From the Eurostat homepage, statistical themes

may be accessed by clicking on ‘Statistics’ at the

top of the page and then clicking on the link to‘Balance of payments’included in the theme ‘Econ-

omy and finance’.

  The database may be accessed from the left-handmenu. To access outward FATS data on employment

and turnover, click on European Foreign Affiliates

Statistics.

Links to the methodology, structured according to

the International Monetary Fund’s common Special

Data Dissemination Standard (SDDS), provide sup-

porting information on aspects such as collectionmethods, data treatment, classifications and defini-

tions and quality aspects. SDDS metadata on out-

ward FATS may be found by clicking on the symbol

‘M’on the right side of the corresponding chapter.

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  The European Union is one of the world’s biggest

investors, and foreign affiliates of European compa-

nies play a very important role in the global econ-

omy. Therefore, outward foreign affiliates statistics

(FATS), which can be defined as statistics describing

the activity of foreign affiliates abroad controlled by

the compiling economy, are increasingly relevant in

formulation of European economic policies, as they

provide information on the role which European

capital groups play in the world’s economy, espe-

cially in terms of sales and employment.

Reporting of outward FATS data in Europe has been

taking place on a voluntary basis up to the reference

year 2006, for which the data are the latest currently

available. The variables covered for most countries

were number of persons employed and turnover

with respectively 11 and 10 Member States provid-

ing the data. As from the reference year 2007 out-ward FATS data transmission to Eurostat became

compulsory for turnover, number of persons em-

ployed and number of enterprises. The publication

of those figures is expected in early 2010.

 Throughout the reference years 2004–06, out of the

Member States with available data, German foreign

affiliates had by far the biggest share in terms of 

both turnover and number of persons employed.

  They were followed by foreign affiliates from Italy,

Finland and France in terms of turnover and Sweden

and Italy in terms of number of persons employed.

Activity of the EU foreign affiliates is bigger inside

than outside the EU. For reference year 2006, the in-

tra-EU27 share in number of persons employed was

56 % (ranging from 42 % for Portugal to 74 % for

the Czech Republic, followed by 72 % for Austria). In

terms of turnover, the intra-EU27 share represents

57 % (ranging from 51 % for Germany to 90 % for

the Czech Republic). EU foreign affiliates’ activity

is bigger inside the EU than outside in all Member

States with available data and for both character-

istics, turnover and number of persons employed,

except for number of persons employed in Portu-guese foreign affiliates (where the extra-EU share

was 61 %) and in Slovakian foreign affiliates (with a

53 % share), and for turnover in Latvian foreign af-

filiates (with a 57 % of turnover registered outside

the EU-27).

Moreover, the most substantial activity of foreign

affiliates takes place in the neighbouring countries

(France for Belgium, Slovakia for Czech Republic,

Germany for Austria and the Czech Republic, Spain

for Portugal or Sweden for Finland). Only for Ger-

man foreign affiliates the biggest country of des-

tination outside the EU in terms of both turnover

and number of persons employed is the United

States. The USA is the biggest destination in terms

of number of persons employed for Sweden and in

terms of turnover for Finland.

 The highest activity of European affiliates outside theEuropean Union is registered in North America, with

32 % in terms of persons employed and 54 % for turn-

over of affiliates located outside the EU27 (USA rep-

resents 92 % of the total figures with North America).

Graph 1 shows the whole geographical breakdown

for number of persons employed and turnover.

In terms of types of activities, services are the main

field of activity for European affiliates with 54 % of 

the total turnover, followed by manufacturing, with

39 %. Only Finland shows a higher share of manufac-

turing (57 %) than that for services (39 %) in terms

of turnover. On the other hand, considering thenumber of persons employed, the manufacturing

with 52 % recorded the highest share, compared

with a 42 % recorded for services. This was caused

by share of employment in manufacturing in affili-

ates controlled from Czech Republic, Germany, Italy

and Finland, while for remaining countries employ-

ment in services was greater.

‘Trade and repairs’ represents the biggest share

among the services categories in both number of 

persons employed and turnover (38 % and 56 % re-

Graph 1 — Number o persons employed and turnover in oreign a-iliates located outsidetheEU-27 in 2006 for11 reporting countriesfornumber of personsemployed(Belgium, Czech Republic, Germany, Greece,Italy,Latvia,Austria, PortugalSlovakia,Finland andSweden), and10 re-porting countriesforturnover(no dataavailable forSweden)

N um e r o p r so ns m pl oy e Num er o p rsons mployed

u rn v er

urnover

REI N AFF L A E A I I ( A )U W EI N AF L A E A I I S ( A S)

Other Europeancountries

24 %

Africa6 %

North American

countries32 %

Central

Americancountries

4 %

SouthAmericancountries

10 %

Asia22 %

Oceania and Polarregions

2 %

Other Europeancountries

10 %

Africa 3 %

North Americancountries

54 %

CentralAmericancountries

4 %

SouthAmerican

countries7 %

Asia18 %

Oceania and Polarregions

4 %