WRITTEN QUESTION E-1835/02

by Salvador Garriga Polledo (PPE-DE) to the Commission

(27 June 2002)

Subject: Investment in eastern Europe

The Community authorities have repeatedly urged undertakings in the Community to invest in eastern Europe and to take advantage of the opportunities offered in the region by the EBRD (European Bank for Reconstruction and Development).

Nonetheless, many Community entrepreneurs who might wish to invest in the countries of eastern Europe do not have the logistic support needed for receiving the information and assistance which would enable them to decide where and how to invest in those countries.

Can the Commission provide information on the logistic support infrastructure which it is in a position to supply to Community entrepreneurs wishing to invest in eastern Europe? Can it also explain what channels are available for interested entrepreneurs to approach the Community authorities in order to request support and assistance?

Answer given by Mr Liikanen on behalf of the Commission

(30 July 2002)

Attracting foreign investment is primarily the responsibility of the host country. In Central and Eastern Europe, the Commission has supported initiatives to encourage inward investment in a variety of ways.

Through the application of the Europe Agreements, and the intensive co-operation with the candidate countries preparing for Union membership, the Commission has assured that many laws and regulations affecting business are aligned with those applicable in the Community, including inter alia that enterprises of the Community are subject to the same rules as those of the host country (known as national treatment) for their establishment and operations.

Pre-accession co-operation has also lead to significantly improving the environment for enterprises in other areas, such as public policy, the quality of public services, public administration and infrastructure.

In addition, with the participation of candidate countries in the Multiannual Programme for Enterprises and Entrepreneurship (2001-2005), businesses have access to information and advice about these markets through Euro Info Centre (EIC) network.

EICs help companies to internationalise their activities by providing information on business opportunities outside the Community, including funding opportunities, tenders for external aid, market analysis, legal provisions applicable to businesses take-over or start-ups, sources of financing for small- and medium-sized enterprises (SMEs), import and export regulations, co-operation initiatives and partner search, sectoral opportunities in fields such as environment, energy, research and technological development.

The network comprises 282 EICs of which 231 are located in Member States and 51 in candidate countries (Poland 12, Bulgaria 8, Czech Republic 7, Hungary 7, Romania 6, Slovenia 3, Estonia 2, Lithuania 2, Slovakia 2, Latvia 1, Cyprus 1). A further 23 will be opened later in 2002 (Poland 4, Hungary 2, Romania 2, Latvia 1, Lithuania 1, Malta 1, and Turkey 12).

For countries such as Russia and Ukraine, the Partnership and Co-operation Agreements (PCAs) are an important instrument to bring these countries in line with the legal framework of the single European Market and the World Trade Organisation (WTO) system. The PCAs contain a number of evolutionary clauses, including the perspective of a free trade area, and provide a framework for wide ranging co-operation, including commercial and industrial co-operation. Technical assistance for economic restructuring in Russia and Ukraine is provided through the TACIS programme.

Information on the business environment is provided by private sector organisations such as the European Business Club in Moscow.