1. Helmut Maukner Managing Partner, Ernst & Young Österreich, Österreich/Austria Die Attraktivität von Süd-Osteuropa für ausländische Investoren Attractiveness of South East Europe for foreign Investors

2. Attractiveness of South East Europe for foreign investors Helmut Maukner Country Managing Partner Ernst & Young Austria CEE Economic Forum 2007

5. South East Europe Attractiveness Survey 2007

9. Introduction: the reality of FDI in Europe (with a focus on South East Europe)

12. SE Europe’s Top 3 countries account for 85% of regional FDI 2001-2005 285 174 141 62 29 40% 25% 20% 9% 4% Romania Bulgaria Turkey Serbia Greece Source: Ernst & Young European Investment Monitor 2001- 2005 Market share in number of projects – Top 5 Number of projects

15. Investors’ perception of CEE and SEE versus other European regions

19. Most attractive regions by location criteria A region primarily attractive for its cost competitiveness… 1 3 South East Europe Central Europe 12% 40% 9% 2 Western Europe Labour cost 1 3 South East Europe Central Europe 20% 17% 2 Western Europe 31% Productivity increase Source : Ernst & Young South East Europe Attractiveness Survey 207 6 - 200 international executives Image

21. Attractiveness within South East Europe

23. Most attractive countries in terms of perception Romania leads the way, ahead of 3 competing challengers 58% 49% 48% 44% 26% Romania Turkey Greece Bulgaria Serbia Source: Ernst & Young South East Europe Attractiveness Survey 200 7 200 international executives Image

25. Most attractive countries in terms of perception Encouraging perspectives for Bulgaria 56% 59% 62% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Greece Turkey Bulgaria Romania 3 year improvement 50% Serbia 44% 48% 49% 58% 0% 10% 20% 30% 40% 50% 60% 70% 80% Greece Turkey Bulgaria Romania Perception 2007 26% Serbia Source : Ernst & Young South East Europe Attractiveness Survey 200 7 - 200 international executives

28. South East Europe 2007 Attractiveness scoreboard Greece Turkey Romania Bulgaria Source : Ernst & Young South East Europe Attractiveness Survey 2007- 200 international executives Bulgaria “ surprising and rising” Greece “ quality not transforming into reality” Romania “ in line with first-wave accession countries ” Turkey “ the sleeping giant”

29. Romania

33. Investors’ expectations for Romania Connectivity and stability Ensure political environment stability Implement more flexible and simple administrative procedures Meet with the European economic regulatory standards 24% 28% 28% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 21% Investor’s expectations Further improve transport and communication infrastructures Improve the education system Source : Ernst & Young South East Europe Attractiveness Survey 2007 - 200 international executives Can’t say = 21%

34. Bulgaria

38. Investors’ expectations for Bulgaria Stability and quality Meet with the European economic regulatory standards Ensure political environment stability Implement more flexible and simple administrative procedures 23% 25% 27% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 20% Investor’s expectations Further improve transport and communication infrastructures Improve quality of life Source : Ernst & Young South East Europe Attractiveness Survey 2007 - 200 international executives Can’t say = 25%

39. Future challenges