High Growth Europe

I was back in London for a few days last month to attend a series of events focused on the export opportunities for UK companies represented by the Central European region, stretching from Poland in the north to Bulgaria in the south. The centrepiece was the High Growth Europe Showcase, organised in concert with the Confederation of British Industries, it’s title reflecting the fact that the region has medium-term GDP growth projections double those of much of western Europe. This was followed by a central and eastern Europe rail seminar, organised jointly with the Rail Industry Association, focussed on the opportunities offered by ambitious investment plans in rail infrastructure and rolling stock in countries like Poland and Romania, backed by generous EU structural funding.

The attraction of the region, including Romania, for British exporters and investors is partly about those GDP growth rates, building a region of 110 million increasingly affluent consumers. And partly about the 150 million euro of EU Structural and Investment Funds available from 2014-2020. There are nine billion euro available for infrastructure projects in Romania alone for example. It is partly about the reputation, across the region, of British companies for quality and reliability; and the UK’s reputation for research excellence and innovation. And compared to many other emerging export markets with similar rates of GDP growth, High Growth Europe is a (relatively) straightforward place to do business. English is widely spoken across the region and there are stacks of low-cost flights from the UK.

Of course there are challenges. In Romania these include continuing relatively high levels of corruption. This is why the work of anti-corruption bodies such as the DNA and ANI is so important. There is too much bureaucracy: the UK is pushing to reduce it, including at the European level. And investors complain about the frequency and unpredictability of legislative changes. Of course, legislation is a matter for Romania, and laws do sometimes need to be modernised. But we hope that the use of emergency ordinances will be restricted to the emergencies they were designed for.

But there are of course challenges in any market. Overall, the greatest block for British exporters in doing business with the region is that the opportunities it presents are not sufficiently understood; addressing this, was, of course, the purpose of the High Growth Europe Showcase. The UK Trade and Investment team at the Embassy in Bucharest, and the British Romanian Chamber of Commerce, are there to support British companies looking to take advantage of opportunities in Romania. You can find out more on the UKTI and BRCC websites