Editor’s Comment

Hello and welcome to the summer 2013 edition of New European Economy. As the world continues its relentless progress toward a future dominated by and organised around technology, this issue examines how technology is changing the way that small companies work. It also focuses on the world’s youngest billionaires, about half of whom got rich quick through technology in the form of such revolutionary trailblazers as Facebook. The other half of the young billionaires, I know you’ll want to know, are heirs to whopping great fortunes. Lucky them.

Hitting the headlines in a big way in recent months has been tax avoidance. The issue has made people sit up and pay attention because of sheer scale of aggressive avoidance being employed by a variety of household corporate names. It’s all completely legal, of course, enabled mainly by governments offering attractively low rates of corporation tax. We take a look at how it all works. On a not so legal note, we also shed light on the steps that G20 governments are taking to eliminate corruption in business. A World Bank report suggests that as much as $1 trillion is paid in bribes every year!

Welcome to the spring 2013 edition of New European Economy. With rapid urbanisation and an ever increasing focus on sustainability, this issue examines how some of the world’s smartest cities are encouraging healthy economic activities that reduce the burden on the environment while improving the quality of life. We also outline how biotechnology is expected to continue to play a key role in sustainable development and discuss the benefits that it will bring in the future as well as the risk and rewards of investing in biotech start-ups and funds.

Welcome to the winter 2012/2013 edition of New European Economy. The year 2012 was one of pain and very little gain as Britain continued along Chancellor George Osborne’s austere road to recovery and the Eurozone lurched from crisis to crisis. Apple became the most valuable company in the world but will no longer sell its products at Comet, which is the latest retail chain to disappear from the high street for good. Banking scandals rocked the City, Facebook botched its IPO and suspiciously low tax bills were received by multinationals such as Amazon and Google.

Autumn has most definitely arrived. There is a lot on offer in the current issue to help you get over the summer and post-Olympic blues.

Still trying to decide on your next investment location? Wondering where you should expand close to home or move to more foreign climates? Look no further – we have examined the economic climate and different locations for investment in Europe and beyond. From Cornwall to the Gävleborg County, from Suriname to Utrecht, we have it all covered. We even went as far as the Caribbean – oh the sunshine alone would be a huge pulling force!

Whether or not you are looking to expand, a study that will be useful to all companies can be found on page 120. We review a PwC study that highlights the advantages of effective capital management. How does your company fare and what can be done to improve your profitability? The study gives an in-depth look into what sectors are doing it right, and what industries haven’t quite mastered efficient capital management as yet. It details how companies can improve their working capital management, therefore increase profitability, so it is well worth a read!

Who has the answer? That’s a good question. So far, none of the EU’s leaders have a straight answer. The banking sector is similarly equivocal – take the Bank of England’s head Mervin King speaking in November: “We thought that by now funding conditions would be better but in fact they are worse. That’s one of the things that made assessing the economy, very difficult…”

So there we have it – delay after delay eventually transformed itself into an agreement: to halve Greece’s bond debt to the banks. The write down is obviously welcome by the debtors but the big questions remain – is this the sovereign debt silver bullet? If it’s just a painkiller how long will the aesthetic last? And once it wears off will the wound ever heal.

One thing is for sure – any deal is better than no deal. And hopefully, the bailout will provide enough room for the markets to manoeuvre itself onto a steadier path.