EU Competitiveness and Industrial Location

In its May 2005 the Group of Economic Policy Analysis (GEPA) discussed the issue of EU competitiveness and industrial location. At that meeting, a request was made for BEPA to prepare a report taking stock of the phenomena of delocalisation and outsourcing in particular and globalisation in general assessing their impact on the European economy and (iii) considering how potential challenges can be addressed.

This report – a draft of which was presented to the GEPA in September 2005 – is a response to this request. The report discusses EU trade patterns, reviews factors affecting industrial location decisions, reviews relevant evidence on globalisation and relocation and their impact in particular on employment and presents a set of policies aimed at improving the EU's competitiveness and its ability to address challenges emanating from these shocks.