Introduction Enlargement – The Facts Corporate Readiness The Questions (group work) What can Chambers do Possible solutions (group work) Lobbying in Brussels

COURSE LEADERS

Boris CIZELJSlovenian Business and Research Association (SBRA)

Stefan PISTAUEREU-Office of the Federal Economic Chamber of Austria

SLOVENIAN BUSINESS AND RESEARCH ASSOCIATION (SBRA)

Avenue Lloyd George 6B-1000 Bruxelles

Tel.: + 32 645 19 10 Fax: + 32 645 19 17E-mail: info@sbra.beInternet: www.sbra.be

SBRA MISSION & ACTIVITIES

SBRA MISSION:

1. Encourage business and research cooperation between Slovenia and the EU and Member States

2. Support members of the Association in their preparations for Accession and beyond

EU-OFFICEOF THE

FEDERAL ECONOMIC CHAMBEROF AUSTRIA

Avenue de Cortenbergh 30B-1040 Brussels

Tel.: + 32/2/286.58.80 Fax: +32/2/286.58.99

E-mail: eu@eu.austria.beInternet: www.wko.at/eu

Participation in the legislative process Lobbying Participation in European interest groups Internal market observation Legal advice Support programmes Training and Study Tours

The Tasks of the EU-Office

The Facts:

01.05.2004: 10 new Member States 2007: accession of Bulgaria and Rumania Dec. 2004: re-examination of Turkey´s

application Countries of the West Balkans region:

potential candidates, Stabilisation and Association Process

Croatia applied Feb.2003 Macedonia supposed to apply December 2003

The Facts: Referenda

Date Turn out „yes“

Malta 03.2003 91% 53.6%

Slovenia 03.2003 60% 89.7%

Hungary 04.2003 46% 83.8%

Czech Republic

06.2003 55% 77%

Lithuania 05.2003 63,3% 91%

Slovakia 05.2003 52% 92.4%

Poland 06.2003 58.8% 77.4%

Estonia 09.2003 63% 66,9%

Latvia 09.2003 - - - - - -Cyprus: no referendum, - only parliamentary ratification

The Facts:

Ratification in the Member States:

No referenda in any of the Member States (only France had considered holding one)

All current MS will ratify until the end of this year;

Denmark was first to ratify  

The Facts:

01.05.2004 - formal Accession New MS apply Acquis Communautaire Transition periods in several sectors, e.g.

- Environmental regulations, transport (cabotage), - Agriculture (direct payments)- Free movement of workers and of capital- etc.

New Neighbors Schengen Acquis - to be adopted separately by a formal

Council decision once the criteria are fulfilled

The Facts:

Euro Preconditions :

- Two years participation in the exchange rate mechanism

- PLUS fulfilment of the convergence criteria - budget deficit of less than 3% of GDP - debt ratio of less than 60% of GDP- low inflation - interest rates close to the EU average

The Facts:

Interim Arrangements: Since 17.04.2003, observers in: The European Parliament Council (except Enlargement and Central

Europe)

• Active observer status without voting rights• Active observers also in

- 2nd Pillar (justice and home affairs)- 3nd Pillar (foreign and security policy)

Pre-Accession Assistance

PHARE

ISPA

SAPARD

Opening up of community programmes

Cooperation with IFI‘s

(EIB, EBRD, World Bank)

Opening of EU programmes

Objectives: Familiarise CEECs with the way Community policies and instruments are put into practice Facilitate exchange of students and youth

Examples: Leonardo da Vinci Socrates Youth for Europe Life III etc.

Phasing in/out:

Free movement of persons Free movement of services Cabotage Agricultural properties Enviromental implementation

Threats: Increased competition Redistrubution of funds Redirection of FDI Inadequate institutions (decision

mechanisms) Inadequate application of the Aquis Cost Sociologial and cultural differences

Opportunities:

Political and economic stability New markets World‘s largest market Greater importance of the EU Level playing field Strategic partnerships Low cost manufacturing

Relevant Internet Addresses: External Relations DG:

http://www.europa.eu.int/comm/external_relations/index.htm

Enlargement DG:http://www.europa.eu.int/comm/enlargement/index.htm

Common Service for External Relations (SCR Programme Implementation)http://www.europa.eu.int/comm/europeaid/index_en.htm

PHARE:http://www.europa.eu.int/comm/enlargement/pas/phare/publist.htm

ISPAhttp://www.europa.eu.int/comm/regional_policy/index_de.htm

Relevant Internet Addresses: Sapard:

http://www.europa.eu.int/comm/enlargement/pas/sapard.htm:http://www.europa.eu.int/comm/agriculture/external/enlarge/index_de.htm

Leonardo da Vincihttp://europa.eu.int/comm/education/leonardo.html

Socrates:http://europa.eu.int/comm/programmes/socrates_en.html

Youth for Europe:http://europa.eu.int/comm/education/youth/index_en.html

Life III: http://www.europa.eu.int/comm/environment/life/home.thm

CAPE 2003 Survey Evaluation of Results

• Sample: 2002=2,575 companies2003=3,865 companies

• SMEs under represented (81%)• Manufacturing over represented

(43.5%)• More than half new respondents

Information on the AcquisLevel of information Frequency

in 2003Percentage

2001 2002 2003

Fully informed about all relevant provisions

371 7 9 10

Know only parts of the European Legislation to be implemented

2,023 56 56 52

Doing business only on domestic market, thus not concerned with EU legislation

289 8 10 8

Having practically no information on EU legislation

1,079 25 23 28

Don’t know 103 4 3 3

Level of information by size of companyThe Bigger - the Better; Progress 2002 - 2003

2002 2003 Level of info

1-50 51-250 Over 250

1-50 51-250 Over 250

Fully informed

7 9 12 8 9 15

Know parts

47 59 67 44 63 63

Domestic market

17 5 2 11 4 1

No info 26 25 17 33 22 20

Exploiting Sources of Information- Still Insufficient Efforts -

• More than half of companies– 53% (54% in 2002) admit not sufficiently exploiting info on Acquis, and only a good third – 37% (32% in 2002) say they do;

• Some noticeable differences between countriesdifferences between countries: only 30% or less of companies exploit these information in LV, SK, HU, BG, more than 40% in EE, RO, SI;

• InternetInternet was selected as the first source of EU info, followed by Chambers of Commerce – a change compared to 2002, when Internet was considered after the Chambers.

Phase of Preparations Possible progress overshadowed by stricter criteria?

84

712

29

41

834

11

25

49

744

8

25

51

0

10

20

30

40

50

60

Preparations notstarted yet

Programme beingdrafted

Programmeimplementedsuccessfully

Deadline too short Implementation notgoing satisfactorily

Don't know

%

2001 2002 2003

Information Services Required

A -- A -- Most preferred (some change vis-a-vis 2002)Most preferred (some change vis-a-vis 2002)

– EU legislation and its implementation (magazines, newspapers, periodicals,etc.) - same

– Briefing of executives and technical personnel – from fifth to second rank

B -- B -- Least preferredLeast preferred (same as in 2002) (same as in 2002)

– Professional consulting services (local and foreign)

2003 Acquis Compliance: 2.0

2,22,1

2,2 2,22,3

2,12,0

2,1

2,42,32,2

2,32,1

2,2 2,2 2,1

1,8

2,12,2

2,4

0

0,5

1

1,5

2

2,5

3

BG CZ EE HU LV LT PL RO SK SI

Average grade 2002 Average grade 2003 10 country average 2003

2001=2.3 2002=2.2

Current Compliance(1= low, 4 = full compliance)

Area 2001 2002 2003

Consumer protect.& product liability

2.7 2.7 2.6

Work safety 2.6 2.7 2.6Product certification, technical regulations, standards

2.7 2.7 2.6

Food quality and safety 2.6 2.6 2.5Environment protection 2.6 2.5 2.5Rules of competition 2.7 2.5 2.4Labels, trademarks, patents 2.5 2.5 2.4

Acquis Implementation Cost Estimate

• On average only 22% of polled companies in 10 countries have made a cost estimate for joining the Single Market.

– 83 % of companies -- less than 1.5 mil.€ (80% in 2002)– 12 % of companies -- 1.5 to 4.9 mil € (11% in 2002)– 5 % of companies -- more than 5.0 mil € (9% in 2002)

• These costs are rather important, since they will represent for half of companies an amount up to their annual turnover.

Major Effects Expected Major Effects Expected from Accessionfrom AccessionMore Open and Competitive Markets

1. 1. 20% - Tougher competition on home market20% - Tougher competition on home market

(PL, SK, SI- plus) (EE, BG, RO- minus)(PL, SK, SI- plus) (EE, BG, RO- minus)

2. 2. 15% - Easier access to EU markets 15% - Easier access to EU markets ((CZ, SICZ, SI - plus) ( - plus) (HU, PL HU, PL - - minus)minus)

3. 3. 14% 14% - - MMore transparent domestic business environment ore transparent domestic business environment

(CZ, SK, HU, SI - plus) (LV, LT - minus)(CZ, SK, HU, SI - plus) (LV, LT - minus)

4. 4. 9% -Access to more competitive conditions for acquiring new 9% -Access to more competitive conditions for acquiring new capital equipment and ITcapital equipment and IT (BG, RO - plus) (EE, SI - minus)(BG, RO - plus) (EE, SI - minus)

Least Expected Effects

• 4.2% - Shortage of qualified workforceShortage of qualified workforce due to migration- except in PL, SK, LT, LV, HU, EE

• 4.4% - Stronger bargaining position vis-à-vis bargaining position vis-à-vis third countriesthird countries- except in LT, LV, EE, CZ, BG

• 6.4% - Increased unemploymentIncreased unemployment due to bankruptcies - except in PL

Business Prospects for the Single Market

Very optimistic

2.2% Optimistic

57.5%

Pessimistic

14.1%

Very pessimistic

3.3%

Don't know

4.1%

No impact

18.7%

Almost 2/3 of companies still optimistic, but…

Business Prospects…more cautious in 2003 than in 2002, but still predominantly optimistic ! percentages

Attitude 2002 2003

Optimistic 68 60

No impact 13 19

Pessimistic 13 17

Don’t know 6 4

Business ProspectsImpact of Export Orientation (percentages of exports in company turnover)

Less than10%

10-30% 31-50% Over 50%

Optimistic

56 69 74 72

No Impact

19 16 12 15

Pessimistic

20 11 10 9

Dont know

6 4 4 5

Business Prospects- Characteristic Country ratings -

• Highest shares of optimistic answers: RO 87%, EE 88% (small sample), LT 73%, BG 69%, SI 68%,

• Highest shares of “no impact” answers: PL 29%, SK 29%, LV 26%, CZ 23%,

• Highest shares of pessimists: HU 27%, PL 27%,

• Highest shares of “don’t know” answer: LV 10%, HU 8%, CZ 7%.

Expected Corp.ProblemsGrowing, though cautious optimism

No problems Minor difficulties

Serious difficulties

Area

2002 2003 2002 2003 2002 2003

Financial 28 25 60 60 13 16

Technical 32 32 59 57 9 11

Human resources

41 46 52 48 8 6

Commercial 27 29 61 58 12 13

Representation in Brussels74% want CCI or Branch Association Office

No need to be

present

14.8%

Branch

association

38.9%

Own office

2.3%

Don't know

7.9%

Other

1.0%

CCI

representative

office

35.1%

Conclusions I.

• Identified positive trends...– Strong support for Accession, and increased

motivation to complete the preparations in time; though results achieved not fully satisfactory;

– With better understanding of the rules, companies are optimistic about their prospects for Single Market, though many fear tougher competition;

– Less problems anticipated for Single market conditions, though current Acquis compliance still unsatisfactory;

– Growing awareness of importance of lobbying and representation in Brussels.

Conclusions II.

… But :– Companies should make better use of

available Acquis information;– Too many companies haven’t started

organised preparations yet;– Very few companies have made cost

estimate for their Acquis implementation – no time to loose!

THE QUESTIONS

• What impact will accession have on your Chamber

• What impact will accession have on your Member Companies

• Discuss the main problems you expect and sort them by order of priority

Possible Solutions to the Challenges

Case: Slovenian Chamber – Peter Ješovnik

• Impact on Chambers?

• Impact on Member-Companies?

What can Chambers do?

demystify de-emotionalise inform prepare support lobby

Austrian Chamber Exerience

Opening of the EU Office in Brussels (1989)

Creating the Department of European Integration (1992)

Europe Departments in all Chambers Europe specialists in all departments

Participation in weekly interministerial meetings

Participation in the Accession Negotiations

Participation in EU Business Associations

Training of „EU Kadettes“

Placement of Stagiaires

Training and Study Tours

Euro Info Center (1992)

Information Offensive Bruchures (general, sectorial) Seminars Road Show (Multi Media Pres.)

Individual, subsidized business

consultancy

„eurofit“ Activities

eurofit - ticket

self-testbrochure

workshopsconsultant

special consulting andcoaching

Detailed Assistance to Enterprise

• eurofit“ Ticket

• „eurofit“ Coaching

• „eurofit“ Self Analyses

• „eurofit“ Workshops

• „eurofit“ Special Coachings (controlling, marketing, finance, cooperation, computerization, organization)

Detailed Assistance to Enterprise

• Info-brochures covering special subjects and directed towards the different sectors

– VAT, CE – Certification, „Success for the pharma industry“, .... Tourism“, .... Transport“, „The new Europe for me as a Bakery“, A sample letter to obtain a VAT Identification Number, Controling etc. etc.

• Train the trainers and coaches

• Individual, subsidized business consultancy

Type of Representation Office Number

Trade & professional organisations in the EU 290

Trade & professional org. engaged in lobbying to the EU

205

Consultants specialising in EU matters 200

Interest groups & non-governmental associations 191

Regional representations 158

National associations 155

Chambers of Commerce and Industry 42

Employers’ Organisations 35

Trade unions 31

Church Associations & Mischellaneous 11

Total 1,318

BRUSSELS LOBBYING LANDSCAPE

Providing information on EU regulations, Community programmes and EU Funding, and relevant developments in EU and member states

Representing their members in respective European Associations;

Issue-specific lobbying on behalf of their members with EU bodies.

LOBBYISTS’ FUNCTIONS

Whom they

represent

• Trade associations and chambers• Professional Associations• Employers and trade union associations• NGO associations• Consulting, legal, lobbying and PR companies• Governments of Regional & federal units, local authorities, and cities• Corporations, banks, companies

TYPOLOGY OF OFFICES

How they represent

their members

• Directly – their members are interested organizations using their services• Indirectly – their members are associations of interested organizations• Mixed type – members are associations, interested org. are associate members

TYPOLOGY

Members motivation

• Expecting benefits (information, influence on EU decisions, image-building, etc.)

• At least avoid damage of not being present in Brussels

TYPOLOGY

Legal Status of

the Office

• Non-profit association registered as asbl in Belgium, fully operational, favorable tax regime

• Representation office of foreign organization, registered not as legal person, only to represent

• Registered as commercial entity, fully operational, paying all taxes

TYPOLOGY

Principle functions

• Active lobbying in EU institutions

• General representation and promotion of members interests

• Information on EU

• Assisting members in communication with EU institutions

TYPOLOGY

Office size

• Smaller offices - up to 3 employees

• Medium size offices - 3-5 employees

• Big offices - more than 5 employees

TYPOLOGY

Country Type of office Total numberCCI R&D

LiaisonRep. to Eur.Assoc.

Other

Czech R. XX XXXX 6

Estonia

XXX 3

Hungary X X XXX 5

Poland XXX 3

Slovenia x- -x 1

OFFICES FROM CCs

Country Type of office Total numberCCI R&D

LiaisonRep. to Eur.Assoc.

Other

Lithuania X 1

Malta

X 1

Turkey X XXX X X X

7

Slovakia X X 2

OFFICES FROM CCS

Name of Representation Office Office of the Hungarian Regions HU

Mazovia region PL

SBRA Slovenian Business & Research Association SI

IPOSZ Hungarian SMEs Association HU

TUGIAD

Young businessmen of Turkey TK

MFB Hungarian Development Bank HU

Josef Zieleniec & Partners CZ

CEBRE Czech Business Representation CZ

TUSIAD

Turkish Business Industrialists & Employers TK

Lithuanian Office for Science and Technology LT

Wardynski & Partners PL

List of NIROC Members

Name of Representation Office Kocian Solc Balastik CZ

MGYOSZ Employers & Industrialists of Hungary HU

ČEZ ČEZ Power Company CZ

AACC Agriculture cooperatives & companies CZ

MBB Malta Business Bureau MT

Slovenske Elektrarne SK

IKV Economic Development Foundation TK

Eastern Poland office PL

Office of the Bratislava Region SK

ELO European Landowners Organisation EE

AB Consultancy TK

Name of Representation Office ITKIB Turkish Textile Exporters TK

Heta Law offices EE

City of Tallinn Representation Office EE

TOBB Office of the Association of Turkish CCIs TK

Delegation of the City of Prague to the EU CZ

TURBO

TUBITAC and SME Association Office TK

HunOR

Hungarian R&D Office HU

Modus Operandi: WKö and SBRA

Principal features of operations and networking by two offices:

• EU Office of the Federal Economic Chamber of Austria

• Slovenian Business & Research Association

EU-OFFICEOF THE

FEDERAL ECONOMIC CHAMBEROF AUSTRIA

Avenue de Cortenbergh 30B-1040 Brussels

Tel.: + 32/2/286.58.80 Fax: +32/2/286.58.99

E-mail: eu@eu.austria.beInternet: www.wko.at/eu

WKÖ staff members in Brussels

EU-Office (in the Perm. Rep) 12 Correspondent for public- and press

relations 1 National experts 5 Experts in European associations 5 Assistants to European Parliament 2 Stagaire at the Court of Justice 1

Elected Functionaries

President of the Eurochambres President of SME-UNION & Member of the

European Parliament President of EuroCommerce President of CEPI President of EURELECTRIC President of CEFS Vicepresident of UEAPME Vicepresident of UNICE Members of ECOSOC

SLOVENIAN BUSINESS & RESEARCH ASSOCIATION, SBRA

6, avenue Lloyd George, 1000 Bruxelles tel.: 02-645 19 10 fax: 02-645 19 17 Email: info@sbra.be Web: www.sbra.be

SBRA – Modus OperandiSBRA – Modus Operandi

• Joint representation office est.by: Slov. Chamber, 2 universities, 6 large companies, with support of 2 ministries (Science & Technology, Agriculture)

• AISBL (Belg.law) – a non-profit association• Activities: inf., consulting, training, lobbying• Staff: 5 (3 professionals, 1 exec.sec.,1 tech)• Funding: 50% - 3 founders, 30% associate

members, 20% own revenues.

Networking Pattern

• Although SBRA private/public entity no problem communicating with EU inst.

• Active collaboration with several Networks, such as: IGLO, NIROC

• Membership in Think Tanks: EPC, CEPS• Contacts with Slovenian Mission to EU