Europe B2C Ecommerce Report 2013

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44 THE EUROPEAN UNION (EU) – A BRIEF OVERVIEW EUROPE B2C E-COMMERCE The European Union – Economic Outlook According to the recent 2012 Employment and Social Developments in Europe Review, unemployment in Europe is soaring, household incomes have declined and the risk of poverty or exclusion is on the rise. These conditions – exacerbated by five years of economic crisis and the return of a recession in 2012 – were especially prevalent in southern and eastern European Union countries. Analysis shows how appropriate labour market reforms and improvements in the design of welfare systems can increase member states’ resilience to economic shocks and facilitate a faster exit from the crisis. According to Commissioner Andor, Europe probably wouldn’t see much improvement in 2013 “unless it achieves greater progress also on credibly resolving the euro crisis, finding resources for much needed investment, including in people’s skills, employability and social inclusion and making finance work for the real economy.” According to the most recent forecast, the EU Commission expects economic activity to gradually accelerate. The pick-up in growth will initially be driven by increasing external demand. Domestic investment and consumption are projected to recover later and by 2014, domestic demand is expected to take over as the main driver of strengthening GDP growth. The weakness of economic activity towards the end of 2012 has proved to be a low starting point for 2013. Combined with a more gradual return of growth than earlier expected, this leads to a projected low annual GDP growth in 2013 of 0.1% in the EU and a contraction of -0.3% in the euro area. Quarterly GDP developments are somewhat more dynamic than the annual figures suggest, and GDP in the fourth quarter of 2013 is forecast to be 1.0% above the level reached in the last quarter of 2012 in the EU, and 0.7% in the euro area. While risks to the growth outlook are still predominantly in a downward direction, the risk distribution has become substantially more balanced. The effective implementation of policies to reinforce the Economic and Monetary Union and foster the necessary adjustments is critical in order to keep the risk of another aggravation of the sovereign-debt crisis at bay. Other downside risks relate to labour market weakness feeding back into domestic demand and slowing reform momentum as well as the still large medium-term budgetary challenges in the US and Japan. Upside risks to GDP growth could materialise if progress with crisis resolution and structural reforms is faster and/ or the return of confidence stronger than expected. Risks to the inflation outlook appear balanced. (EU Winter Forecast 2012 – 2014, published on 22 February 2013). The European Union – About the euro As already mentioned above, in 1999, the European Union took a large step towards a unified Europe. 11 countries formed an economic and political struc- ture within the European states. Membership to the EU became something to aspire to, as the organisation gave 0.1% Projected growth of GDP in Europe in 2013 -0.3% Projected growth of GDP in € area Europe in 2013 €
THE EUROPEAN UNION (EU) – A BRIEF OVERVIEW EUROPE B2C E-COMMERCE 45 significant support and financial aid to countries capable of meeting the required criteria. Each member of the Euro-zone was to share the same currency, known as the Euro, which was to replace their own individual monetary units. These countries only started using the Euro as the official currency in early 2002. Using a single currency in all of the 23 participating countries does simplify life for travellers somewhat. The 23 countries are: 1. the original 11 countries of the EU: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain 2. Since the introduction of the Euro, 12 more countries have started using the Euro as formal currency. These countries are: Andorra, Cyprus, Estonia, Greece, Kosovo, Malta, Monaco, Montenegro San Marino, Slovakia, Slovenia, Vatican City 3. Lithuania aims to introduce the euro in 2015 Technically speaking, Andorra, Kosovo, Montenegro, Monaco, San Marino and Vatican City are not members of the European Union. However, they have found it beneficial to adapt to the new currency regardless. A special agreement has been reached with these countries that allows them to issue Euro coins with their own national emblems. The Euro currency is currently one of the world’s most powerful currencies. The history of the exchange rate of the euro against the US dollar has been turbulent. When the euro was introduced the average exchange rate against the US dollar in 1999 was 1.0658. In January 2002, a euro was worth a little more than $0.90. By the end of 2007 its value had skyrocketed to $1.4708. In the years up until 2013 the euro mostly feel in value following concerns about Eurozone financial troubles. Near the end of March 2013 the exchange rate stood at $1.2964. The following table shows fluctuations in the value of the euro against the US dollar and some other currencies (source ECB): THE FOLLOWING TABLE SHOWS FLUCTUATIONS IN THE VALUE OF THE EURO AGAINST THE US DOLLAR AND SOME OTHER CURRENCIES (SOURCE ECB): 2007 2008 2009 2010 2011 2012 EUR/USD 1.3705 1.4708 1.3948 1.3257 1.3920 1.2848 EUR/GBP 0.68434 0.79628 0.89094 0.85784 0.86788 0.81087 EUR/JPY 161.25 152.45 130.34 116.24 110.96 102.49 EUR/RMB 10.4178 10.2236 9.5277 8.9712 8.9960 8.1052 Figure 26: Fluctuations in the value of the euro against the US dollar and other currencies, ECB
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Page 3 and 4: COLOFON EUROPE B2C E-COMMERCE 3 Eco
Page 5 and 6: PREFACE EUROPE B2C E-COMMERCE 5 Pre
Page 7 and 8: EUROPE: A BRIEF INTRODUCTION EUROPE
Page 9 and 10: EUROPE B2C ECOMMERCE 2012 EUROPE B2
Page 11 and 12: EUROPEAN REGIONS AT A GLANCE EUROPE
Page 13 and 14: EUROPEAN REGIONS AT A GLANCE EUROPE
Page 15 and 16: EUROPEAN E-COMMERCE, GOODS AND SERV
Page 17 and 18: EUROPEAN E-COMMERCE FROM A GLOBAL P
Page 19 and 20: EUROPEAN E-COMMERCE FROM A GLOBAL P
Page 21 and 22: INTERNET ACCESS AND (MOBILE) USAGE
Page 23 and 24: INTERNET ACCESS AND (MOBILE) USAGE
Page 25 and 26: THE MATURE MARKETS EUROPE B2C E-COM
Page 31 and 32: THE EMERGING MARKETS EUROPE B2C E-C
Page 33 and 34: THE EMERGING MARKETS EUROPE B2C E-C
Page 35 and 36: FORECAST UP TILL 2016 EUROPE B2C E-
Page 37 and 38: ONLINE PAYMENTS IN EUROPE EUROPE B2
Page 39 and 40: CROSS-BORDER E-COMMERCE IN EUROPE E
Page 41 and 42: CROSS-BORDER E-COMMERCE IN EUROPE E
Page 43: THE EUROPEAN UNION (EU) - A BRIEF O
Page 47 and 48: THE EUROPEAN UNION (EU) - A BRIEF O
Page 49 and 50: EUROPEAN MEASUREMENT STANDARD FOR E
Page 51 and 52: HOW TO GET INVOLVED? Business partn
Page 53 and 54: ABOUT THE AUTHORS EUROPE B2C E-COMM
Page 55 and 56: EUROPE B2C E-COMMERCE

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