Corporate readiness for enlargement in Central Europe

Abstract:

The fourth annual survey on corporate readiness for EU membership shows continuing strong support of the Central European business community for accession (89%), and an increased compliance with EU legislation. 89% of bigger companies claim to be fully or partially informed about EU law, whilst only 61% of SMEs believe themselves to have reached that level. An increasing number of companies estimate that their compliance with the general provisions of EU law has improved. Companies have made major progress to respect the relevant legal provisions of the EU. The percentage of companies that have not started organised preparations yet has decreased from 51% in 2003 to 41% in 2004. Companies from Slovenia, the Czech Republic and Estonia believe themselves to be best prepared. Slovenian companies score the highest percentage among companies being fully informed about EU law. The Czech Republic and Hungary are leading in the area of compliance with the general provisions of EU law. Preparations seem to be the most advanced in the sectors of financial services, agriculture, and manufacturing. The sectors of construction, real estate, business activities and information technologies lag behind with organised preparations. The most important effects anticipated by polled companies have remained unchanged since 2003. These are: 'tougher competition in the home market' (20%), followed by 'easier access to EU markets' (15%), 'more transparent business practices in the home market' (14%), and 'bigger inflow of foreign direct investment' (10%). Lack of finance remains the main preoccupation of companies.