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The Economyof the European Union
European Economic and Trade Office
歐 洲 經 貿 辦 事 處
Scope•27 Member States27 Member States
•487 Million people487 Million people
•25% of the world’s economy25% of the world’s economy
•25% of the world’s external 25% of the world’s external tradetrade
23 official languages23 official languages
Economic activity
Expenditure on social protection
External Trade
EU – Taiwan Trade
The Euro
The European Union
and Foreign Direct Investment
Taiwan’s FDIin the EU
Taiwan’s FDI in the EU
16th investor in the EU 2.2 billion Euros in FDI stocks Less than Hong Kong, Singapore
(both 15 billion Euros), Korea (2.8 billion Euros)
Taiwanese investors are far from having fully exploited the opportunities offered by the EU
Taiwan Outward FDI by Main Destination
China50%
Others16%
Indonesia8%
Thailand7%
Malaysia6%
Singapore2%
Hong Kong1%
US5%
Vietnam4%
EU251%
Why investin the EU?
EU advantages offered to foreign investors
Access to a single market of 487 million customers, with no borders for goods, services or people
A common regulatory framework, setting standards for the world (e.g. WEEE, RoHS…)
A strong scientific research base Highly skilled labour force
Europe has a slight trade surplus The EU has a stable macroeconomic
environment due to the Euro which maintains low inflation, low deficits, and which keeps a ceiling on national debt
This single currency is freely floating on the foreign exchange markets
The ‘Lisbon Agenda’ is designed to create a restructuring of the economy to adapt it to current needs
Foreign investors operate in a stable economic environment
The EU is not expensive
The pattern of taxation and welfare systems throughout the EU is very diverse and varied.
The amount of GDP taken in taxes varies between 35% and 55% depending on the country, with most of the large Member States situated between 40% and 50%.
The EU is not expensive However, the burden of taxes,
welfare and regulation is more than offset by: Higher productivity of labour and capital Strong public services (transportation,
utilities, general business environment) Incentives and subsidies often available
for new investments Competitiveness is not measured by
taxes and welfare, but by the overall factor costs and productivity
Opportunities for all investors
Direct investment in industrial manufacturing or services
Equities Funds and portfolio investment Venture capital
Eastern Europe special!
5th and 6th EU enlargement
2004
+10
2007
+ 2
Relatively less well-off…
…but growing much faster!
Declining unemployment
EU membership brings convergence and economic
stability
An EU policy to foster development and growth
Labour costs
Corporate tax rates
Attractive FDI destination
Openness to foreign investment: illustration in the banking sector
Sustainability
Links
The European Economic and Trade Office (English and Chinese language website)
http://www.deltwn.ec.europa.eu
Acronyms CZ: Czech Republic EE: Estonia CY: Cyprus LV: Latvia LT: Lithuania HU: Hungary MT: Malta PL: Poland SI: Slovenia SK: Slokakia