SEE coun­tries should seek to in­spire con­fi­dence among ex­ec­u­tives

Top 100 See - - See Top Industries -

What is the place of our re­gion in the Euro­pean and the global pic­ture?

The lat­est EY Euro­pean at­trac­tive­ness sur­vey based on in­ter­views with 808 in­ter­na­tional de­ci­sion-mak­ers in­di­cates that China is still per­ceived as the world’s most at­trac­tive in­vest­ment re­gion. Europe has im­proved its at­trac­tive­ness in the eyes of in­vestors, Western Europe be­ing the sec­ond most at­trac­tive re­gion after China. CEE has also strength­ened its po­si­tion as a pre­ferred in­vest­ment des­ti­na­tion and re­mains among the top picks for in­vestors.

South­east Europe is quite di­verse in terms of in­vest­ment cli­mate – Turkey’s strong growth at­tracts in­vestors; Greece’s pri­va­ti­za­tion pro­gramme is ex­pected to of­fer many op­por­tu­ni­ties for large-scale trans­ac­tions; Bul­garia and Ro­ma­nia keep a low pro­file and Ser­bia is gain­ing mo­men­tum.

World's most at­trac­tive re­gions to es­tab­lish op­er­a­tions

con­fi­dence within their bor­ders re­mains weak.

What are the key fac­tors defining the M&A ma­tu­rity of a coun­try?

Reg­u­la­tory, po­lit­i­cal, so­cio-eco­nomic, fi­nan­cial, in­fra­struc­ture, tech­no­log­i­cal fac­tors are key M&A ma­tu­rity fac­tors. With­out good aware­ness on them, risks can be left un­mit­i­gated and op­por­tu­ni­ties over­looked. Over the last few years when growth was weak, we saw that in­vestors are pay­ing much more at­ten­tion to macroe­co­nomic, reg­u­la­tory and po­lit­i­cal fac­tors. In my ex­pe­ri­ence, though, deals hap­pen when the tar­get demon­strates strong busi­ness fun­da­men­tals.

What are the main chal­lenges/ad­van­tages for the in­vestors in this re­gion?

The big­gest chal­lenge for most of the SEE coun­tries is the slug­gish or neg­a­tive growth. Con­sid­er­ing that emerg­ing mar­ket economies are slow­ing down, my feel­ing is that for­eign in­vestors are for the most part con­fi­dent that Europe will weather th­ese hard times, and emerge stronger and dif­fer­ent. When asked how Europe could strengthen its com­pet­i­tive­ness, re­spon­dents to our At­trac­tive­ness Sur­vey in­di­cated im­prov­ing busi­ness con­fi­dence and eco­nomic sta­bil­ity through re­duc­ing debt as key pri­or­i­ties. Cost dif­fer­en­tials now mat­ter less when as­sess­ing a re­gion’s com­pet­i­tive­ness, how­ever, re­search and in­no­va­tion now rank sec­ond among com­pet­i­tive­ness fac­tors.

Which are the sec­tors which are most likely to at­tract in­vestor’s in­ter­est to the re­gion?

In 2012 the au­to­mo­tive sec­tor pro­vided the big­gest sur­prise: de­spite Euro­pean car sales be­ing at their low­est for al­most two decades in 2012, the sec­tor pro­vided 28% of all new FDI jobs in Europe – most be­ing com­po­nent mak­ers. The fo­cus of car man­u­fac­tur­ing is grad­u­ally mov­ing from the heart of Europe to its pe­riph­ery and com­pa­nies are quickly re­or­ga­niz­ing their as­sets to gain com­pet­i­tive­ness and tap into grow­ing mar­kets.

Newspapers in English

Newspapers from Bulgaria

© PressReader. All rights reserved.