Western Europe remains a major source of foreign direct investments (FDI) in the region. Yet, CEE countries fight a fierce battle for additional funding;

CEE countries are now considered as part of Europe and yet the business environment needs further improvement

The governments of CEE countries should do the utmost to become attractive for investments from Asia and the USA. This means to continue combating corruption, making the necessary structural changes and reforming the judicial system. The major challenges the region still faces present an obstacle for larger investments from geographically remote countries. Nevertheless, both American and Chinese companies have started to demonstrate interest in CEE countries though there has to be more effective political, institutional and economic governance as well as a better understanding of the region by the countries outside Europe before any definite investment plans are made.

“The USA and Asia no longer consider CEE countries as a separate region but as part of Europe”, said Andrea Goldstein, Head of Global Relations, OECD Investment Committee. According to him CEE experts working in the USA or Asia can play a role in the process of getting more familiar with CEE countries as a place for investment. He has also pointed out that attracting FDI to CEE countries is more important than ever.

Mario Holzner, economist at the Vienna Institute for International Economic Studies (wiiw) who participated in the discussion also supported this view:

“There is a fierce competition to attract FDI to CEE countries but there are not enough instruments in order to attract them”.

Julle Pedersen, Regional Treasury Director of Delphi Automotive EMEA, voiced the opinion of real business. Delphi Automotive is headquartered in the USA and is one of the largest multinational automotive parts manufacturing companies. Pedersen pointed out that CEE countries could brilliantly perform the role of a bridge between Europe and Russia.

Despite the desire of CEE countries to attract investments from the USA and Asia they have to be regarded only as an additional option. According to the participants in the panel discussion Western Europe is and will remain the most important source of funding in the CEE region. In this respect Goldstein gave Bulgaria as an example of a country in which 76% of FDI come from Western Europe.

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