“Outsourcing” and economic development in Europe

Doc. 10348
19 October 2004

Motion for a resolution
presented by Mr Mimica and others

This motion has not been discussed in the Assembly and commits only the members who have signed it

1.       The tendency by many companies to invest in new production capacities in the countries of the Central, Eastern and South Eastern Europe – a development known as “outsourcing” – has given rise to a heated debate in political and economic circles in some more developed countries of Western Europe. Some public figures, even in government positions, have called for counter-measures in order to put development on hold. Contemplated counter-measures mainly entail reducing EU and other funding to countries that, due to their stage of economic development or political choice, have lower corporate taxes or labour costs below the level prevailing in the developed countries of Western Europe.

2.       We, the signatories of this motion, welcome, however, the unimpeded spread of investments across all regions of Europe. In our view, unhindered right to take investment decisions and define measures to attract investments is a major principle of market economy and motivating competition among countries and regions. A possible unification of the European Union’s rules that would restrict outsourced investments would run counter to the basic need of European economic cohesion and accelerated growth of the underdeveloped countries in Europe. This practice would be especially worrisome in light of the fact that other instruments and policies of EU still do not suffice to extend comprehensive assistance for achieving harmonious and equal regional development in Europe. Many European countries that are in the process of transition should be offered a real opportunity to develop by fully utilizing their internal potential for growth. Unrestricted investment flows would lead to higher prosperity for all, including well developed countries and their companies that would also benefit from a higher level of production, trade and income. From the Council of Europe’s point of view, this motion would represent a major contribution to upgrading the potential for growth in an economically stable and prosperous Europe. That is a vital precondition for political, democratic and social stabilisation and cohesion of Europe as a whole.

Signed [1]:
MIMICA Neven, Croatia, SOC
ARSENYAN Gourgen, Armenia, LDR
BERISHA Sali, Albania, EPP/CD
BOJOVIC Božidan, Serbia and Montenegro, EPP/CD
BRAJOVIC Ivan, Serbia and Montenegro, SOC
BRAJOVIC Nan, Serbia and Montenegro, SOC
BUZATU Gheorghe, Romania, NR
DORI� Miljenko, Croatia, LDR
ILASCU Ilie, Romania, NR
KALEZIC Ivan, Serbia and Montenegro, SOC
KO�I Petro, Albania, SOC
LOZANCIC Ivo, Bosnia and Herzegovina, EDG
MATUŠIC Frano, Croatia, EPP/CD
MILICEVIC Ljiljana, Bosnia and Herzegovina, EPP/CD
MILOJEVIC Goran, Bosnia and Herzegovina, EPP/CD
MIMICA Neven, Croatia, SOC
NASUFI Xhevdet, the former Yugoslav Republic of Macedonia, EDG
OLTEANU Ionel, Romania, SOC
PETROVA-MITEVSKA Eleonora, the former Yugoslav Republic of Macedonia, SOC
RADULOVIC-ŠCEPANOVIC Valentina, Serbia and Montenegro, SOC
TEPSHI Qazim, Albania, EPP/CD
TOPALLI Jozefina, Albania, EPP/CD
ZERNOVSKI Andrej, the former Yugoslav Republic of Macedonia, LDR
ŽIŽIC Zoran, Serbia and Montenegro, SOC



Socialist Group
Group of the European People’s Party
European Democratic Group
Liberal, Democratic and Reformers’ Group
Group of the Unified European Left
Not registered in a group