Outsourcing can Boost European Economy - EU Study
Mar 10, 2005
An unpublished study by the EU Commission suggests that outsourcing can help create jobs and boost the European economy.
However, the study which was to be discussed by European finance ministers in a meeting was pulled out from the agenda, as it was considered too inflammatory for countries such as Germany and France.
EU officials speculated that an EU report in support of outsourcing could threaten the outcome of a French referendum scheduled for May 29, 2005, in which French voters will accept or reject the European constitution.
The report, commissioned by the EU's economic affairs department, assessed the effects on Europe of both outsourcing and offshoring. The report concluded that there is no evidence that a de-industrialization process was underway in Europe. It added that the overall positive developments of net job creation throughout the EU, especially for the high skill area, should not be ignored.
The study also points out the US as an example, where only 1 percent to 2 percent of annual job losses can be attributed to relocation of jobs outside the country.
High-wage and high-tax countries such as Germany and France are pitching for Europe-wide rules on corporate taxes, which they hope will stop companies from moving to low-tax countries like Estonia and Slovakia. Both countries are also against any regional aid to these low-tax countries.
Reported by Dow Jones Newswires
However, the study which was to be discussed by European finance ministers in a meeting was pulled out from the agenda, as it was considered too inflammatory for countries such as Germany and France.
EU officials speculated that an EU report in support of outsourcing could threaten the outcome of a French referendum scheduled for May 29, 2005, in which French voters will accept or reject the European constitution.
The report, commissioned by the EU's economic affairs department, assessed the effects on Europe of both outsourcing and offshoring. The report concluded that there is no evidence that a de-industrialization process was underway in Europe. It added that the overall positive developments of net job creation throughout the EU, especially for the high skill area, should not be ignored.
The study also points out the US as an example, where only 1 percent to 2 percent of annual job losses can be attributed to relocation of jobs outside the country.
High-wage and high-tax countries such as Germany and France are pitching for Europe-wide rules on corporate taxes, which they hope will stop companies from moving to low-tax countries like Estonia and Slovakia. Both countries are also against any regional aid to these low-tax countries.
Reported by Dow Jones Newswires