Cross border mergers and acquisitions activity has been increasing rapidly. Fragmented capital markets are giving way to more integrated pan-European markets. Evidence is emerging that enterprises in Europe are organising their activities in a variety of new ways. Together, these issues pose new strategic and operating challenges for everyone who does business in Europe. The European Union's agenda has moved on too.
Enlargement is a real prospect in the short term.
Further regulatory co-ordination and accounting harmonisation are being considered. Pressure is being put on state pension and welfare schemes, which will lead to reform. This will create new opportunities for the private sector. And between many of these forces there are reinforcing effects, together leading to a more dynamic and integrated Europe. The Euro and E-business look set to combine to create a much more competitive marketplace.