The countries of Central Europe and the Baltics acceded to the EU on 1 May 2004. This meant that the trade barriers across the EU from the UK to Central Europe were removed; also at the same time, the UK government allowed the people of Central Europe to work freely in the UK. Trade and workers can now move freely between the UK and Central Europe.
The countries in Central and Eastern Europe were only freed from the strictures of Communism in the last 15 years, therefore many citizens in those countries remember the old ways and the adverse cultural attitudes to business that the system bred. However, these countries have responded to the challenge of the loss of their traditional markets in Eastern Europe, by embracing the business culture of the West, largely establishing a positive trade balance with the West. All the economies of Central Europe are growing fast, and have done so consistently over a 10 year period, although there is still a very long way to catch up to the West. Pay levels are in general at one fifth of those in the UK outside the capital cities. Corruption and petty bureaucracy across the region remains a problem, as is an authoritarian management style, but the situation is improving. The EU are making available billions of Euro grant funding over the next few years to address the structural problems of the Region.
The younger generation have been an important contributor to the change. The high unemployment in Central Europe has engendered a highly educated (many to Masters level), multi-lingual (with English now the number one language of choice, followed by German and Russian) and hard working, conscientious work force. A highly driven group of entrepreneurs has also grown in tandem with the increasing success of Western international business in the Region. This has been achieved through business development and direct investment in production and outsourced shared service centres in the Region.
Additionally, there are many commercially interesting markets bordering the Central European region which enables the enterprising UK business to use the Central European countries as a safe commercial “bridge” into markets such as Ukraine, Romania, Belarus and Russian Federation. We firmly believe in the commercial strength and plentiful business opportunity of the Central European Region which has been sadly neglected by UK trade bodies and UK companies generally, with preference given to the long-haul emerging markets of China and India – traditionally extremely difficult and costly markets to enter and subsequently manage. The opportunity cost (management time and expense) of dealing in the latter markets versus Central Europe should be seriously considered given that Prague, for example, is only two hours away on a budget airline.
We look forward to sharing our enthusiasm for the area and it’s people with you and to working as your partner in Central Europe.