*connectedthinking

United Nations Conference, GenevaWhat changes for business in Europe?Antoni Turczynowicz, 11 May 2004

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Population in million:

• Cyprus (0.76)• Czech Republic (10.2)• Estonia (1.37)• Hungary (10.2) • Latvia (2.35)• Lithuania (3.48)• Malta (0.39)• Poland (38.6)• Slovakia (5.38)• Slovenia (1.99)

Total: 75 million people

EU from 1 May 2004

What changes for business in Europe?

Increase in population: 28% Increase in territory: 34%Increase in GDP: 4,4%

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Business Issues

• Classic business and tax footprint is changing

• New business models are being implemented

• Regional distribution hubs are being created

• Restructuring of manufacturing production within Europe

What changes for business in Europe?

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Business Issues

• Consumer power is expected to increase with no borders

• Transparency of pricing is creating issues

• Facilitation of shared service centers

• Opportunities from funding

• Digitalisation of the documentation flow

What changes for business in Europe?

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Business Impacts

• More centralised & uniform control structures across CEE linking in with the rest of the EU block

• Corporate risk management easier to impose and manage in a centralised structure

• Flatter and more responsive business structures

What changes for business in Europe?

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Conclusion

• Expect changes – a single market of 25 countries!

• First phase

- Getting the ‘back office’ right

- Opportunities will impact the bottom line

• Next phase

- Business strategies linked in to the opportunities that exist from the adoption of the acquis?

What changes for business in Europe?

www.pwc.com/neweurope