EU-DIGEST

In an interesting and animated presentation by Ernst & Young at the World Trade Center in Almere, the audience heard that based on information collected by this Global Accounting and Consulting firm Europe's future growth will probably spring from the knowledge and intelligence assembled in its large cities. Urban development is showing to be a powerful global growth trend based on the fact that world's cities are adding 200,000 citizens a year, and that by 2030, 60 or 80% of the world's population will be urban. Cities are increasingly where wealth creation and origination of products and services is happening. Already, 75% of global added-value is produced in cities and their inhabitants generate 9 out of 10 innovations.

Looking at the big picture Ernst and Young says Europe is considered - by risk-averse investors - to be the most attractive business location today, and ranks ahead of China in its perceived ability to overcome the economic crisis. Business decision-makers however believe the post-crisis world will also see the eastward shift continue. For the long term a total of 74% of the Ernst and Young respondents said they are very confident, or at least fairly confident in Western Europe's ability to tackle the financial and economic meltdown. It is apparent now that Europe's advanced regime of "flexicurity" can be viewed as having been an advantage; cushioning the downturn and drop in demand, by keeping more people at work, avoiding home foreclosures, and providing social security payments to the jobless.

Overall, the future outlook for Europe, based on the Ernst & Young survey is looking good. The report also indicates that in the coming three years the ranking of the economic players on the world scene will change, with the six most attractive investment regions being: 1.Central and Eastern Europe 2.China 3.India 4.Russia 5.Western Europe and 6.Brazil.

For a copy of the Ernst and Young report click on this link.

Labels: Ernst and Young, Europe, Investment opportunity, World Economy