Outline of the Mission

The third annual EABC Business Mission to Europe, held from 25th May to 4th June 2008, was led by the EABC President Alastair Walton. With the support of the Department of Foreign Affairs and Trade and the European Commission, the Mission held meetings in Austria, Hungary, Spain, France and Belgium.

The key objectives of the Mission were:

• To identify trade and investment opportunities and challenges for Australian companies

• To review the EU regulatory environment, with an update from Brussels

• To explore macro-economic and political conditions in selected EU Member States

Key Findings

Australian Presence in Europe and Brussels

There is little presence on the ground in Brussels from Australian companies and limited understanding of the European Commission and the leading role the European Commission plays.  The lack of a properly resourced lobbying effort in Brussels is in strong contrast to the presence of US companies.

An operating presence for Australian companies in Europe/Brussels is necessary to gain full access to the European market and the full benefits of European integration, including the ability to trade freely with the entire European market.  There are no accredited Australian journalists is based in Brussels, with all EU news to Australia coming via the UK.  There is doubt as to whether Australian business draws adequate benefit from Australia’s involvement with BusinessEurope.

Emerging Market Opportunities in CEE, SEE, and CIS

With a market close to 400 million people, and projected growth expected to greatly exceed that of the EU-12, the nations of Central Eastern Europe, South Eastern Europe and CIS (including Russia and Ukraine) remain robust destinations for foreign investment. European companies are looking for investors to expand into Russia but a good local partner is necessary. Austria and Hungary are well positioned geographically to act as hubs for expansion to these areas. The Austrian bank, RZB Bank plans to expand in CEE and the CIS from 3000 branches currently, to 3750 by 2010.

Competition Policy

A meeting with European Competition Commissioner Neelie Kroes covered many important points regarding EU policy, including cross border mergers in the banking industry, energy liberalisation, antitrust leniency programmes and state aided Research & Development programmes.

Large Spanish companies have expressed keen business interest in Australia, particularly with PPP projects, in the areas of construction, renewable energy, and water management, and continuing interest in defence contracting.  Local partners/mid-size acquisitions are sought.

Energy

Australian biofuels, clean coal technology, coal seam exploration and other Australian technologies will become increasingly important in the European market.  Some of the largest foreign investments in Hungary in 2007 were from Heliogrid (Solar Panels)  and Genesis Energy.

Further Action

• The EABC will engage key parties in discussions regarding potential additional Australian Government resourcing in Brussels, and to encourage Australian business to understand the role of Brussels in European operations.

• EABC will communicate to relevant Australian Government and State Government representatives and agencies the perception held by European officials and business people of a ‘duopoly’ in the Australian market for the construction of infrastructure.

Delegates

• EABC will encourage peak Australian business organisations to increase cooperation with BusinessEurope, and other relevant European business organisations, with EABC to build an effective framework for ongoing collaboration.