A selection of news from the European Union

Czech Republic

Exports boom

Latest figures released by the Czech Statistics Office showed that the country saw a trade surplus of US$1.8 billion in 2005 against a deficit of over US$1.1 billion in the previous year. The export growth was one of the fastest in Europe last year, said Jiri Havel, Czech Deputy Premier for Economy. Exports, alongside investment, are the driving forces of economic growth in the country, Havel said. The first trade surplus in history was attributed to booming car exports. The launch of operation of TCPA car plant in Kolin, Central Bohemi, could even drive the surplus to over US$3.4 billion this year, Havel added.

Finland

Household electronics sales up

Sales of household electronics in Finland rose by 18 percent year-on-year to US$2 billion in 2005, according to Kotek, the Finnish cooperation organization of the household electronics sector. Sales of household IT equipment increased by 41 percent, entertainment electronics up 19 percent, large household appliances up 16 percent and mobile phones 16 percent. Kotek predicts that sales will continue to increase in 2006.

France

France Telecom partners ST on R&D

French telecoms operator France Telecom announced in February that it signed an R&D partnership agreement with Swiss chip maker STMicroelectronics to jointly analyze and define end-to-end services and platform requirements. The two partners also announced their first joint R&D project, which aims to define architectural solutions for the next generation of mobile platforms. The R&D activities will focus on the use of multimegabyte SIM memory capacities, highspeed SIM-to-mobile-platform interfaces, SIM IC support for contact-less operation, and the use of the SIM IC as a dependable basis for the trusted mobile platform.

Telecoms operator to be taken over

Australian investment bank Babcock & Brown is set to buy out Eircom, Ireland's biggest telecoms firm, for US$3 billion, following a 12.5 percent stake acquisition worth US$264 million in the company last October. The full takeover will be followed by a cash injection from the bank's private equity arm. Eircom has 78 percent of Ireland's fixed-line market and serves as the country's number one ISP. The company is also expected to control 90 percent of the Irish mobile market after acquiring Meteor Mobile, the country's third-biggest mobile operator, last year. Eircom currently has 200,000 users for its broadband Internet service and plans to raise the figure to 500,000 by 2007.

Poland Microsoft to open center in Poland Microsoft announced plans to set up an innovation and programming center in Poland to leverage the local top-notch programmers.

This will be Microsoft's third-largest center of its kind after facilities in Germany and the UK. The center will be based in Warsaw and is expected to eventually employ about 200 people. The US computer software firm also plans to open five training centers across Poland as part of its ongoing efforts to promote education worldwide.

Spain

Google, Skype invest in Spanish Wi-Fi startup

Google and eBay's Skype invested in a Spain-based startup company, Fon, which aims to create a global network of shared Wi-Fi hotspots. The Internet giants were joined by two venture capital firms, Index Ventures and Sequoia Capital, with all four investors combined putting US$21.7 million into the company. Fon will allow its network users, called foneros, to share hotspots around the world. All members will be categorized into three groups: Linus, Bill, or Alien. Linus members share their Wi-Fi hotspots with other foneros and can use any Fon hotspot for free. Bill members share their access with Alien members for a fee and can't roam the Fon network for free. Alien members pay to use the Fon network based on usage. The Fon network is also expected to help Internet service providers like Google and Skype expand their user base.

Sweden

Oil-free economy planned

The Swedish government announced plans to completely break the nation's dependence on oil by 2020. The plan, which aims to replace all fossil fuels with renewable energies, is a response to global climate change, rising oil prices and growing oil scarcity. The target will be achieved by boosting research on renewables, increasing renewable electricity production and giving financial incentives for people switching to environmentally friendly alternatives.

A special committee including industrialists, academics, farmers, car makers, civil servants and others, was formed to carry out the tasks and it will present its first proposals on further development of biofuels this summer.

The Netherlands

China International to acquire Dutch container maker

China International Marine Containers (CIMC), the world's largest manufacturer of maritime shipping containers announced plans to buy Dutch container maker Burg Industries for US$99 million. The acquisition will be made through a US$60 million joint venture between CIMC's Hong Kong unit CIMC Tank Equipment Investment Holdings and two Burg Industries shareholders. The acquisition costs a total US$132 million, of which 75 percent will be contributed by CIMC.

UK

Manufacturing slump to continue

In the quarterly regional trends survey, the Confederation of British Industry, the UK's business lobby group, and credit information services firm Experian predicted that a further 24,000 manufacturing job losses are expected in the next three months across the nation. The survey said the overall decline mainly results from the severe falling of domestic orders and persistently weak export orders. According to the survey, the manufacturing sector, which accounts for around 17 percent of the country's GDP, continued to shed jobs in the past three months, particularly in Northern Ireland, the southeast counies, London and West Midlands.