Thursday, June 03, 2010

Is Europe Attractive? Not Quite, Ernst and Young Finds

In a recent extensive study (44 pages) of how attractive Europe is to foreign direct investment (FDI), Ernst & Young reveals that the UK and the Continent, while still key players, are slowly losing their attractiveness to China, India and Eastern Europe. Slow expected economic growth in the region and the recent crisis in Greece, Spain, Italy, Iceland and Portugal are only worsening the influx of capital. One mitigating recent factor is the dramatic fall in the value of the Euro, which could actually work in Europe’s favor, as inwards investments can now buy more local stuff with less foreign currency...

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