ideal destination of pfi in some european countries

7/21/2019 Ideal Destination of PFI in Some European Countries

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2/94

n' #e #eco#'e' in !"e %innci/ cco&n! o% co&n!#$7 ./nce o% $men!0 Acco#'in* !o !"e

In!i!&!e o% In!e#n!ion/ Finnce, o#!%o/io %/o #ie !"#o&*" !"e !#n%e# o% one#"i o%

eci!ie %#om one co&n!#$ !o no!"e#0;

Fo#ei*n o#!%o/io in2e!men! i oi!i2e/$ in%/&ence' .$ "i*" #!e o% #e!n n' #e'&c!ion o%#i+ !"#o&*" *eo*#"ic 'i2e#i%ic!ion0 T"e #e!n on %o#ei*n o#!%o/io in2e!men! i

no#m//$ in !"e %o#m o% in!e#e! $men! o# non=2o!in* 'i2i'en'0

Fo#ei*n o#!%o/io in2e!men! !$ic//$ in2o/2e "o#!=!e#m oi!ion in %innci/ e! o%

in!e#n!ion/ m#+e!, n' i imi/# !o in2e!in* in 'ome!ic eci!ie0 FPI //o in2e!o#

!o !+e #! in !"e #o%i!.i/i!$ o% %i#m oe#!in* .#o' i!"o&! "2in* !o 'i#ec!/$ mn*e

!"ei# oe#!ion0 T"i i imi/# conce! !o !#'in* 'ome!ic//$> mo! in2e!o# 'o no! "2e

!"e ci!/ o# e4e#!ie #e3&i#e' !o e#on//$ #&n !"e %i#m !"! !"e$ in2e! in0

Fo#ei*n o#!%o/io in2e!men! 'i%%e# %#om %o#ei*n 'i#ec! in2e!men! (FDI), in "ic"

'ome!ic comn$ #&n %o#ei*n %i#m0 W"i/e FDI //o comn$ !o min!in .e!!e#

con!#o/ o2e# !"e %i#m "e/' .#o', i! mi*"! m+e i! mo#e 'i%%ic&/! !o /!e# e// !"e %i#m !

#emi&m #ice0 T"i i '&e !o in%o#m!ion $mme!#$> !"e comn$ !"! on !"e %i#m "

in!im!e +no/e'*e o% "! mi*"! .e #on* i!" !"e %i#m, "i/e o!en!i/ in2e!o#

(eeci//$ %o#ei*n in2e!o#) 'o no!0

T"e "#e o% FDI in %o#ei*n e3&i!$ %/o i *#e!e# !"n FPI in 'e2e/oin* co&n!#ie

com#e' !o 'e2e/oe' co&n!#ie, .&! ne! FDI in%/o !en' !o .e mo#e 2o/!i/e in 'e2e/oin*

co&n!#ie .ec&e i! i mo#e 'i%%ic&/! !o e// 'i#ec!/$=one' %i#m !"n i2e/$ one'

eci!$0?

In !"i #o@ec! !"e &!"o# i// !!em! !o n/$e !"e %innci/ #i+ n' !"e /e*/ %#meo#+

%o# !"e %o#ei*n o#!%o/io in2e!men! in S/o2+i, Romni, Po#!&*/, Sin n' S/o2eni He

#o@ec! i// %i#! #een! !"e %innci/ n/$i o% !"ee co&n!#ie m#+e! n' !"e /e*/%#meo#+ !"e#e%!e#0

THEFINANCIALRISKSPERTAININGTOFOREIGNPORTFOLIOINVESTMENT

ROMANIA

; 9Po#!%o/io F/o T#c+e# FA90 In!i!&!e o% In!e#n!ion/ Finnce0

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#ucharest Stock Echange

T"e B&c"#e! S!oc+ E4c"n*e e!./i"e' /!e# com#e' i!" o!"e# co&n!#ie

%#om Cen!#/ n' E!e#n Eoe0 T"e %i#! #e*&/!ion #e*#'in* eci!ie "2e e4i!e'

ince 15, "en L no0 1:15 on !"e #ocein* &ni! o% !!e in comnie n' Lno0 ;115 on comnie, cme in!o %o#ce0 T"e L no ;115 i *o2e#nin* !"e i&e o%

"#e n' .on' .$ Romnin comnie0 Gi2en !"e economic n' o/i!ic/ con!e4!,

!"e eme#*ence n' 'e2e/omen! o% !"e ci!/ m#+e! in Romni '&e !o !"e

ini!i!ion n' con'&c! o% !"e #i2!i!ion #oce0 T"&, L no0 :11 #e*#'in* !"e

#i2!i!ion o% !!e one' comnie imoe' !"e eme#*ence o% ci!/ m#+e! n'

#e/!e' /e*i/!ion !o //o !#'e, in n o#*nie' mnne#, o% !"e 2o&c"e# "#e' !o !"e

o&/!ion in !"e P#oce o% M P#i2!i!ion0 A/!"o&*" !"e 'e'/ine imoe' .$ !"i/, %o# 'o!in* !"e / o% eci!ie n' !oc+ e4c"n*e < mon!" !"e / (no0

:81?) in!#o'&ce' in !ime %o# !"e Go2e#nmen!, .&! i! #o2e' .$

P#/imen! &n!i/ %!e# !o n' "/% $e#, in 1?0

On !"e .i o% L no0 :81?, !"e N!ion/ Seci!ie Commiion, !"e B&c"#e!

S!oc+ E4c"n*e n' RASDA e#e c#e!e'0 Wi!" !"e eme#*ence o% ci!/ m#+e!,

comnie #e ./e !o mo.i/ie !"e %&n' 2i/./e in !"e econom$ n' m$.e %innce'

!"#o&*" i&e o% "#e n' .on', "ic" .ecome e%%ec!i2e &c" /!e#n!i2e %&n'in*com#e' !o .n+ c#e'i!0 In ''i!ion, !oc+ m#+e! #o2i'e e%%icien! //oc!ion o%

%&n', %innci/ in2e!o# &ni"in* comnie c"#c!e#ie' .$ /c+ o% e%%icienc$ o#

#e'&ce' #o%i!.i/i!$0 T"&, !"e economic i!&!ion o% comnie i #e%/ec!e' in

!"em#+e! #ice o% "#e /i!e' on !oc+ e4c"n*e n' i in%/&encin* in2e!o#7 in!e#e! no!

on/$ %o# e4i!in* eci!ie, .&! %o# "#e n' .on' &.@ec! !o &./ic #im#$ o%%e#0 Some

o%%e# o% .on' i&e' .$ #i2!e comnie e#e no! &cce%&/ '&e !o !"e "i*"

'e*#ee o% in'e.!e'ne o% !"e i&in* comnie0 T"ee e4m/e i//&!#!e !"e e4i*en!oe#!ion in ci!/ m#+e! n' #!ion/ !!i!&'e o% in2e!o#0 In ''i!ion, !oc+=m#+e!

in'e4e, c/c&/!e' .$ !"e ci!/ m#+e! in!i!&!ion o# .#o+e#*e %i#m, #e imo#!n!

!oo/ &e' .$ in2e!o# in e2/&!in* !"e e#%o#mnce o% eci!ie n' mn*emen! o%

o#!%o/io o% %innci/ eci!ie0 Since !"e e! &, B&c"#e! S!oc+ E4c"n*e n'

RASDA = !"e !o %&n'men!/ in!i!&!ion o% ci!/ m#+e! in Romni = "2e *one

e2e#/ !e !o '! !o m#+e! #e3&i#emen! n' in!e#n!ion/ !n'#'0 A #e&/! o%

#o*#e in !"e %ie/' o% in%o#m!ion n' comm&nic!ion !ec"no/o*$ (ICT), ci!/m#+e! c!i2i!$ in Romni " .een com&!e#ie' ince !"e .e*innin* o% i!


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e!./i"men!0 T"&, /!"o&*" BSE " m'e ini!i/ !#nc!ion in c/ic/ $!em .$

.#o+e# mee!in* in !"e i!, in #een!, !#nc!ion #e con'&c!e' i!" e/ec!#onic $!em0:

RASDA m#+e!, ince i! e!./i"men!, n e/ec!#onic m#+e!0 T"e#e%o#e, &in*

!"e !oo/ o%%e#e' .$ in%o#m!ion !ec"no/o*$ n' comm&nic!ion " //oe' !"e9.nin*9 o% ome 'e2e/omen!- !*e o% !oc+ e4c"n*e c!i2i!$ in o co&n!#$ n' !"e

/i*nmen! i!" !"e #c!ice o% m@o# Eoen n' Ame#icn !oc+ e4c"n*e0 S&.mi!!in*

!o !"e !#en' #eco#'e' o#/'i'e in !"e %innci/ %ie/' = cono/i'!ion !"#o&*" me#*e# n'

c3&ii!ion = in 855:, B&c"#e! S!oc+ E4c"n*e n' RASDA "2e me#*e'0 In!e',

!"e me#*e# .e!een BSE n' Finnci/ n' Commo'i!ie %#om Si.i& " no! occ#e', !"e

!o e4c"n*e !#$in* !o !#! ome #oce o% 'e2e/omen! on !"ei# on n'

co//.o#!ion i!" o!"e# %o#ei*n e4c"n*e0 In !"i #eec!, e men!ion !"e co//.o#!ion.e!een BSE n' !"e Vienn S!oc+ E4c"n*e, i!" !"e #e&/! o% !"e /&nc" ROT in'e4

!"! i c/c&/!e' .e' on i4 ./&e=c"i /i!e' on BSE0 In !"i $, '! %#om Romnin

!oc+ e4c"n*e m#+e! .ecome ccei./e !o A&!#in n' Eoen in2e!o#0

T"e 'e2e/omen! o% !"e Romnin ci!/ m#+e! i in%/&ence' .o!" .$ im#o2in*

/e*i/!ion in !"i #e, "ic" /i*ne' !o !"e Eoen Union !n'#' n' !"e

'i2e#i%ic!ion o% eci!ie /&nc"e' (%&!e con!#c!, o!ion, #e%e#ence #i*"!), !"!

#e in '#m!ic e4!enion0 In !"i #eec!, e men!ion !"e /e*i/!i2e c"n*e n' !"eB&c"#e! S!oc+ E4c"n*e- conce#n %o# !.i/i!$ o% ci!/ m#+e!, #e&/!in* in

#e'&cin* !"e n&m.e# o% /i!e' comnie, .ein* i!"'#n !"e comnie !"! "2e no!

com/ie' !"e e4c"n*e #e*&/!ion0 A/o, in ome ce, m@o# "#e"o/'e# "2e n!e'

c"n*e in ocie!$- #e*ime, mo2in* %#om n oen ocie!$ (/i!e' on !"e e4c"n*e) in

c/oe' ocie!$, eeci//$ in !"e i!&!ion o% comnie i!" %o#ei*n ci!/0 Hoe2e#, !"e

2o/&me o% !#nc!ion #e con'&c!e' on n ' !#en' (%i*e 1) .e!een 1:=

855J, /!"o&*" !"e#e "2e .een $e# in "ic" 2/&e o% !#nc!ion %e// 'on com#e' !o#e2io& $e#0 In !"i con!e4!, $e# 1 n' 1 #e #em#+e' .ec&e, !"e

'ec#ee o% GDP, in%/&ence' .$ e+ economic i!&!ion, &! !"e %in*e##in! on !oc+

c!i2i!$ (com#e' i!" 1J, !"e 2o/&me o% !#nc!ion i!" "#e in 1

'ec#ee' .$ :6 n' in 1 i!" ne#/$ ;56)0 /i+e E#!eBn+

comnie "o/'e' .$ /oc/ in2e!o# /i+e

C#!ic Bn+ n' T#ni/2ni Bn+

comnie i!" %o#ei*n "#e"o/'e#> Romnin Comme#ci/ Bn+ (!"! " m@o#

"#e"o/'e# E#!e.n+), Romnin De2e/omen! Bn+ ("e#e Socie!e Gene#/e " !"e

m@o#i!$ "#e), Pe!#om (!"e %o#me# !!e one' comn$ .o&*"! .$ OMV), A/#o

(comn$ o/' in #i2!i!ion #o*#m !o M#co In'&!#ie), Po/ico/o# ("e/' .$

%o#ei*n in2e!men! %&n'), Mec"e/, en!i2 e!c0

!!e one' comnie /i+e An!i.io!ice, T#n/ec!#ic o# T#n*0

T"e $e# 855J=855 .#in* ec!c&/# c"n*e %o# %o#ei*n in2e!men! !#en' ! B&c"#e!

S!oc+ E4c"n*e0 T"e imc! o% %innci/ c#ii "oc+in* n' !moi/ !"e BSE

c!i2i!$, eeci//$ in %o#ei*n in2e!men!, e ee in %i*e ?0 T"e m i% i!"'# o%

!"e %o#ei*n ci!/ %#om !"e BSE !#!e' in &/$ 855J n' con!in&e' !"e "o/e $e# n' in

!"e %i#! mon!" o% !"e ne4! $e#0 T"e .e*innin* o% !"e $e# +non mi2e *oin* o&!

o% %o#ei*n ci!/, .&! !"e *oo' e2o/&!ion o% Romnin econom$ " .#o&*"! %o#ei*n

in2e!o#, .&! !"e mo&n! o% !"e ci!/ m//0 T"e n/$i o% 2i/./e '! %o# 855

"o 'ec#ee o% %o#ei*n in2e!o# in!e#e! .ec&e !"e mon!" 2/&e %o# c"e n'

/e c&! 'on n' !"e o/' 'imini"e', in %i*e :0 T"e imc! o% %innci/ c#ie on

Romnin /oc/ m#+e! i !#on*0 Dei!e !"e *oo' %innci/ #e&/! o% !"e

comnie/i!e' ! BSE, !"e !moi/ o% !"e %o#ei*n m#+e!, eeci//$ USA m#+e!,

'e!e#mine !"e !#on* 'ec#ee o% !"e "#e-2/&e0

An/$e o% %o#ei*n o#!%o/io in2e!men! ! B&c"#e! S!oc+ E4c"n*e in G/o./ Finnci/C#ii, IBIMA B&ine Re2ie, Vo/&me 8 (855)0


7/94

Soce> An/$e o% %o#ei*n o#!%o/io in2e!men! ! B&c"#e! S!oc+ E4c"n*e in G/o./

Finnci/ C#ii, IBIMA B&ine Re2ie, Vo/&me 8 (855)0

BVB //o !#'e in co#o#!e, m&nici/, n' in!e#n!ion/ .on', n' in 855J, !"e BVB

oene' 'e#i2!i2e !#'in*0 T"e BVB- in!e*#!e' *#o& inc/&'e !#'in*, c/e#in*,

e!!/emen!, n' #e*i!#$ $!em0 T"e BVB- A/!e#n!i2e T#'in* S$!em (ATS) //o

!#'in* in /oc/ c#enc$ o% 8 %o#ei*n !oc+ /i!e' on in!e#n!ion/ ci!/ m#+e!, o% "ic"

e/e2en #e U0S0 ./&e c"i !oc+0 Dei!e 'i2e#i%ie' eci!ie /i!in*, !"e i!&!ion on !"e

in!e#n!ion/ ci!/ n' %innci/ m#+e! " '2e#e/$ %%ec!e' !"e Romnin ci!/

m#+e!, n' /i3&i'i!$ #emin /o0 Nei!"e# !"e *o2e#nmen! no# !"e Cen!#/ Bn+ imoe

#e!#ic!ion on $men! n' !#n%e#0 T"e #e' !e oci!e' i!" ci!/ m#+e! cce,

!i// "i*" !#'in* %ee, n' inconi!en! en%o#cemen! o% !"e co#o#!e *o2e#nnce #&/e "2e

+e! Romni i!"in %#on!ie# m#+e! !ie#0 Co&n!#$ %&n', "e'*e %&n' n' 2en!e ci!/

%&n' con!in&e !o #!ici!e in !"e ci!/ m#+e!0 Mino#i!$ "#e"o/'e# "2e !"e #i*"! !o#!ici!e in n$ ci!/ inc#ee0 Romnin ci!/ m#+e! #e*&/!ion i no EU=coni!en!,

i!" cco&n!in* #e*&/!ion inco#o#!in* EC Di#ec!i2e IV n' VII0

Romni e/come o#!%o/io in2e!men! n' i o#+in* !o 'e2e/o e%%icien! ci!/ m#+e!0

T"e Finnci/ Re*&/!o#$ A*enc$ (ASF) i #eoni./e %o# #e*&/!in* !"e eci!ie m#+e!0

T"e ASF im/emen! !"e #e*i!#!ion n' /icenin* o% .#o+e# n' %innci/ in!e#me'i#ie,

!"e %i/in* n' #o2/ o% #oec!&e, n' !"e #o2/ o% m#+e! mec"nim0 T"e

De#!men! o% S!!e> 851? In2e!men! C/im!e S!!emen! (&ne 851?)0


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B&c"#e! S!oc+ E4c"n*e (BVB) #e&me' oe#!ion in 1:, %!e# "i!& o% :5 $e#0 T"e

BVB oe#!e !"#ee=!ie# $!em !"!, ! #een!, /i! !o!/ o% 15? comnie, i!" 8

comnie in !"e "i*"e! !ie#0 T"e o%%ici/ in'e4, BET, i .e' on .+e! o% !"e 15 mo!

c!i2e !oc+ /i!e', "i/e !"e BET=C in'e4 %o//o !"e !#en' o% // !oc+ /i!e' on !"e BVB0

T"e BVB /o " n o2e#=!"e=co&n!e# m#+e! (RASDA) !"! c#en!/$ /i!


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.&'*e!#$ !#*e! i!"in c"ie2./e /imi!, ome ./ncin* !4 .e .#o'enin*, #eemen!

o% #oe#!$ !4e, n' oi./$ e2en 8 inc#ee in !"e income !4 #!e m$ .e nece#$0

An ini!i/ e4o#! .e' o&!&! #eco2e#$ o&/' "2e ''i!ion/ oi!i2e im/ic!ion %o# !"e

!.i/i!ion o% %o#ei*n 'e.! /e2e/ ini!i//$, n' #e'&c!ion &.e3&en!/$ in !"e me'i&m !o

/on*=!e#m0 A c"ie2emen! o% e4!e#n/ n' in!e#n/ ./nce o&/' .e ccomnie' in &c"

ce .$ /oe# in%/!ion, "i*"e# 2in* #!e n' #o'&c!i2i!$ *in, n' o&/' !"& &o#!

#i+ #!in* &*#'e, #enee' %o#ei*n ci!/ in%/o #e e4ec!e'0 S&c" %/o o&/'

#eci!e !"e c#enc$, o&/' &o#! !"e 'iin%/!ion #oce, o&/' #e'&ce in!e#e! #!e

%!"e#, o&/' inc#ee in2e!men! n' em/o$men!, n' !"& o&/' #ein%o#ce %ic/ #e2en&e

inc#ee n' o&/' /o ee !"e e#2icin* o% %o#ei*n 'e.!0 In ''i!ion, c#enc$ #eci!ion

!o !"e /e2e/ o% Lei ;0=;0< %o# EUR 1 .$ mi' 851; ( #e/ #eci!ion o% .o&! 15=186)

o&/' ee conce#n .o&! c#enc$ #i+ oci!e' i!" !"e /#*e #oo#!ion o% %o#ei*n

c#enc$ 'enomin!e' c#e'i!0 E2en!&//$, cceion !o ERM II o&/' come n!//$0 W"i/e

&.e! o% &c" in%/o %o#ei*n 'i#ec! in2e!men! #e .ene%ici/ !o &!ine' *#o!"

!"#o&*" !"ei# oci!e' !#n%e# o% !ec"no/o*$ n' +no="o in ''i!ion !o &/emen!in*

'ome!ic 2in*, !"e#e #e /o o!"e# !$e o% ci!/ in%/o !"e 2o/!i/e one "ic" cn

in'&ce #i+ !o mc#oeconomic n' %innci/ !.i/i!$0

No!i!"!n'in* !"e oi!i2e imc! o% n ini!i/ .oo! !o economic *#o!" .#o&*"! .o&!

!"#o&*" e4!e#n/ c"nne/, in !"e /on*e#=#&n "oe2e#, mo#e .#o' .e' *#o!" o&/' .e

nece#$, n' !"e#e%o#e !"e e4o#! 'emn' m&! .e com/emen!e' .$ &o#!in* *#o!" in

!"e &/$ o% *oo' n' e#2ice %o# !"e !i%c!ion o% n inc#ee' 'ome!ic 'emn' %o#

.o!" in2e!men! n' con&m!ion0 T"e me'i&m !e#m Go2e#nmen! Economic S!#!e*$ i

%oc&e' on !"e %o//oin* o.@ec!i2e> () #omo!e !"e economic #eco2e#$ n' c#e!e ne @o.

(.) '@&! !"e c#en! cco&n! n' &./ic 'e%ici!, con!in&e !"e 'iin%/!ion #oce (c) #o!ec!

!"e o&/!ion c!e*o#ie mo! %%ec!e' .$ !"e economic c#ii (') im#o2e !"e me'i&m=!e#m

#e'ic!.i/i!$ n' e#%o#mnce o% !"e %ic/ o/ic$, m4imie n' im#o2e e%%icienc$ o% !"e

&e o% !"e Eoen Union %&n' (e) ene !"e /on* !e#m &./ic %innce &!in.i/i!$ (%)

#e!#&c!e n' im#o2e !"e e%%icienc$ o% !"e &./ic 'mini!#!ion (*) %i#m/$ im/emen! !"e

commi!men! &me' .$ !"e m&/!i/!e#/ %innci/ *#eemen! i!" !"e In!e#n!ion/

Mone!#$ F&n', !"e Eoen Commiion, !"e Wo#/' Bn+, n' !"e o!"e# in!e#n!ion/

%innci/ in!i!&!ion0 T"e Go2e#nmen! 'e2e/omen! #io#i!ie #e 'e!i/e' in !"e

Con2e#*ence P#o*#mme 855=85180 T"e %o!" e'i!ion o% !"e Con2e#*ence P#o*#mme

'ec#i.e Romni- .i/i!$ o% 'imini"in* !"e !#&c!/ 'e%ici! !o /e !"n 16 o% !"e GDP


10/94


11/94

E/ec!#ic/ mc"ine#$, Mc"ine#$, e3&imen!, /ince, P&./ic &!i/i!ie0 To in'&!#ie in

#!ic&/#, !"e e/ec!#ic/ mc"ine#$ n' !"e mo!o# 2e"ic/e, !#i/e# n' #!, "2e /#e'$

"on in 8515 !#on* *#o!" .o!" in o&!&! n' e4o#!, /e'in* !"e #eco2e#$ in

mn&%c!in*011

PORTUGAL

Po#!&*/ " &%%e#e' %#om /o GDP n' #o'&c!i2i!$ *#o!" %o# mo#e !"n 'ec'e .e%o#e

!"e o&!.#e+ o% !"e #ecen! c#ii0 Po!en!i/ o&!&! *#o!" " .een on !e'$ 'on#'

!#en', i!" come!i!i2ene .ein* &n'e#mine' .$ #iin* &ni! /.o co! n' 'ee=#oo!e'

!#&c!/ #o./em0 A cone3&ence o% e#i!en! c#en! cco&n! 'e%ici!, Po#!&*/ "

cc&m&/!e' "i*" e4!e#n/ 'e.!, "ic" i #e%/ec!e' in "i*" "o&e"o/', co#o#!e n' %ic/

'e.!0 On !"e oi!i2e i'e, Po#!&*/ 'i' no! i!ne #oe#!$ .oom n' .&!, no# e#e

.n+ e4oe' !o !o4ic e!0 T"e#e%o#e, !"e %innci/ ec!o# " e!"e#e' !"e %i#! "e o%

!"e %innci/ c#ii #e/!i2e/$ e//0

T"e e#io' .e%o#e !"e #e3&e! %o# %innci/ i!nce m#+e' .$ &n%2o./e

'e2e/omen! in &./ic %innce n' o#enin* economic o&!/oo+0 T"i /e' !o

'e!e#io#!ion o% con%i'ence n' #iin* m#+e! #ee on Po#!&*&ee 'e.!, ccen!&!e' .$

!"e ne*!i2e 'e2e/omen! in eo #e o2e#ei*n .on' m#+e!0 Ami'! conec&!i2e

'on*#'in* .$ c#e'i! #!in* *encie o% Po#!&*&ee o2e#ei*n .on', !"e co&n!#$ .ecme

&n./e !o #e%innce i!e/% ! #!e com!i./e i!" /on*=!e#m %ic/ &!in.i/i!$0 In #//e/,

!"e .n+in* ec!o#, "ic" i "e2i/$ 'een'en! on e4!e#n/ %inncin*, inc#ein*/$ c&! o%%

%#om in!e#n!ion/ m#+e! %&n'in* n' "' !o !e & #e/ince on !"e Eo$!em %o# %&n'in*0

Fo//oin* #e3&e! .$ Po#!&*/ on J A#i/ 8511, !"e T#oi+ coni!in* o% !"e Eoen

Commiion, ECB n' IMF ne*o!i!e' n Economic A'@&!men! P#o*#mme, ime' !

#e!o#in* con%i'ence, en./in* !"e #e!n o% !"e econom$ !o &!in./e *#o!", n'

%e*'in* %innci/ !.i/i!$ in Po#!&*/, !"e eo #e n' !"e EU0 I! co2e# !"e e#io'

8511=851?0 I! %innci/ c+*e i// co2e# & !o EUR J .i//ion %o# oi./e %ic/ %inncin*

nee' n' &o#! !o !"e .n+in* $!em0 One !"i#' (& !o EUR 8< .i//ion) i// .e %innce'

.$ !"e Eoen Union &n'e# !"e Eoen Finnci/ S!.i/i!ion Mec"nim (EFSM),

no!"e# !"i#' .$ !"e Eoen Finnci/ S!.i/i!$ Fci/i!$ (EFSF), n' !"e %in/ !"i#' .$ !"e

IMF &n'e# n E4!en'e' F&n' Fci/i!$0

11 Romni> Co&n!#$ S!#!e*$, 8511 851?, B/c+ Se T#'e n' De2e/omen! Bn+ (A#i/,8511)0


12/94

Fi#!, c#e'i./e n' ./nce' %ic/ cono/i'!ion !#!e*$, &o#!e' .$ !#&c!/ %ic/

mee n' .e!!e# %ic/ con!#o/ o2e# P&./ic=P#i2!e=P#!ne#"i (PPP) n' !!e=one'

en!e##ie (SOE), imin* ! &!!in* !"e *#o &./ic 'e.!=!o=GDP #!io on %i#m 'on#'

!" in !"e me'i&m !e#m0 T"e &!"o#i!ie #e commi!!e' !o #e'&cin* !"e 'e%ici! !o ;6 o% GDP

.$ 851;0

Secon', e%%o#! !o %e*' !"e %innci/ ec!o# !"#o&*" m#+e!=.e' mec"nim &o#!e'

.$ .c+=& %ci/i!ie0 Cen!#/ ec! "e#e #e mee !o %o!e# *#'&/ n' o#'e#/$

'e/e2e#*in*, !#en*!"ene' ci!/i!ion o% .n+, #ein%o#ce' .n+in* &e#2iion n' !"e

/e o# &nin'in* o% !"e BPN .n+0

T"i#', 'ee n' %#on!/o'e' !#&c!/ #e%o#m !o .oo! o!en!i/ *#o!", c#e!e @o., n'

im#o2e come!i!i2ene0 In #!ic&/#, !"e P#o*#mme con!in #e%o#m o% !"e /.o

m#+e!, !"e @&'ici/ $!em, ne!o#+ in'&!#ie n' "o&in* n' e#2ice ec!o#, i!" 2ie

!o !#en*!"enin* !"e econom$7 *#o!" o!en!i/, im#o2in* come!i!i2ene n' %ci/i!!in*

economic '@&!men!0

10 Portg!l "!s sffere# from lo$ G%P !n# pro#&tivit' gro$t" for more t"!n ! #e&!#e(

Din* !"e $e# .e%o#e !"e %innci/ c#ii (8551=5), 2e#*e nn&/ #e/ GDP *#o!"

on/$ 1 e#cen!0 O2e# !"e /! 'ec'e, Po#!&*/7 economic *#o!" !"e econ'=/oe! o%

!"e 8J EU Mem.e# S!!e0 T"i i in con!#! i!" !"e 11=8555 'ec'e, "en !"e econom$

*#e ! #!e .o2e ; e#cen! e# $e# on 2e#*e0 GDP e# ci! in Pc"in* Poe#

S!n'#' (PPS) inc#ee' !o J5 e#cen! o% !"e EU1: 2e#*e in 8555, .&! " .een

!*n!in* ince0 G#o N!ion/ Income (GNI) 'e%/!e' .$ !"e #i2!e con&m!ion 'e%/!o#,

no!"e# in'ic!o# o% #oe#i!$, *#e e2en /e !"n GDP, #e%/ec!in* !"e e%%ec! o% e#2icin*

/#*e n' *#oin* !oc+ o% e4!e#n/ /i.i/i!ie (ee G#" 1)0

80 Potenti!l otpt gro$t" "!s )een on ! #o$n$!r# tren# sin&e t"e l!te *++,s0 Dec/inin*

o!en!i/ *#o!" #e%/ec!e' 'ec#ein* con!#i.&!ion o% ci!/, /.o n' !o!/ %c!o#

#o'&c!i2i!$ (ee G#" 8)0 L!e! #o@ec!ion oin! !o !*n!in* o!en!i/ GDP, !#on*/$

ne*!i2e con!#i.&!ion o% /.o &/$ #e no! %&//$ comen!e' .$ /i*"!/$ oi!i2e *#o!"

con!#i.&!ion o% ci!/ n' %c!o# #o'&c!i2i!$0 Si*ni%icn! *e inc#ee e2en 'in*

e#io' o% #iin* &nem/o$men! (in 855=15 comen!ion e# em/o$ee inc#ee' .$ ;0;

e#cen! n' 10: e#cen!, #eec!i2e/$, 'ei!e #ie in !"e &nem/o$men! #!e %#om #o&n'

e#cen! in 855 !o o2e# 11 e#cen! in 8515) oin! !o "i*"e# !#&c!/ &nem/o$men!0


13/94

;0 %eep-roote# str&tr!l pro)lems "!ve &!se# ! m!.or loss of &ompetitiveness 0 Since

!"e in!#o'&c!ion o% !"e eo, Po#!&*/ " e4e#ience' i*ni%icn! #e/ e4c"n*e #!e (REER)

#eci!ion 2i==2i i! !#'in* #!ne#, '&e !o *e *#o!" /#*e/$ o&!!#iin*

#o'&c!i2i!$ '2nce (G#" ;)0 Hoe2e#, !"e come!i!i2ene #o./em *oe e// .e$on'

in'e3&!e #ice n' *e 'e2e/omen!0 Ri*i'i!ie n' ine%%iciencie in /.o n' #o'&c!

m#+e!, e+ en%o#cemen! o% come!i!ion #&/e, '$%&nc!ion/ @&'ici/ $!em,

m/%&nc!ionin* "o&in* n' #en!/ m#+e!, /c+ o% 'e3&!e "&mn ci!/ n' o%

inno2!ion, "2e // "me#e' n e%%icien! &e o% #eoce n' !"e '$nmim o% !"e

econom$0

?0Portg!l "!s )een losing e/port m!r0ets s"!res( T"e /o in #ice come!i!i2ene

!o*e!"e# i!" n &n%2o./e *eo*#"ic/ n' ec!o#/ e4o#! comoi!ion !#n/!e' in!o i*ni%icn! /o in m#+e! "#e on m#+e! %o# /.o=in!eni2e *oo', "e#e Ain n'

E!e#n Eoen come!i!ion " .een !#en*!"enin*0 Po#!&*/7 e4o#! concen!#!ion in

m// n&m.e# o% eo #e m#+e!, "ic" "2e *#on /e !"n o#/' !#'e, " /o

con!#i.&!e' !o i! &.'&e' e4o#! e#%o#mnce o2e# !"e ! 'ec'e0 Po#!&*/- e4o#!

!#&c!e i /o mo!/$ %oc&e' in /o=*#oin* ec!o# (ee Bo4 1)0 In i!e o% ome

im#o2emen! on 'i2e#i%ic!ion in !"e mo! #ecen! $e# !o#' e4o#! i!" "i*"e#

!ec"no/o*ic/ con!en!, !"ei# %!"e# e4nion i "e/' .c+ .$ !"e /o +i// .e0 In !"e

e#2ice ec!o#, Po#!&*/- "#e in o#/' !#'e " inc#ee', .&! %!e#=*#oin* ec!o#

#e#een! 2e#$ m// "#e o% !o!/ e4o#! o% e#2ice0

:0 Portg!l1s e/tern!l in#e)te#ness is ver' "ig"0 T"e !oc+ o% ne! e4!e#n/ /i.i/i!ie i

e!im!e' ! #o&n' 115 e#cen! o% GDP ! !"e en' o% 8515, %#om /e !"n ?5 e#cen! !en

$e# .e%o#e0 On c#en! #o@ec!ion i! o&/' #ec" 185 e#cen! o% GDP in 8518 (ee Bo4 8)0

A #e&/! o% !"e 'e#eci!ion o% Po#!&*&ee /i.i/i!ie inc/&'in* *o2e#nmen! 'e.! one'

.$ %o#ei*ne#, !"e#e " .een m// #e'&c!ion in e4!e#n/ 'e.! ! m#+e! #ice0 T"e nn&/ne! #im#$ income o&!%/o " men"i/e #ec"e' ;1Q8 e#cen! o% GDP n' i e4ec!e' !o

+ee on inc#ein* in /ine i!" ne! e4!e#n/ 'e.! n' in!e#e! #!e0


14/94

J0 Hig" government #efi&its $ere re&or#e# in )ot" 2,,+ !n# 2,*,(T"e %ic/ 'e!e#io#!ion

in 855 #e%/ec!e' !"e e2e#i!$ o% !"e #eceion, !"e oe#!ion o% !"e &!om!ic !.i/ie#,

e// 'ic#e!ion#$ %ic/ e4nion m// #! o% i! in !"e con!e4! o% !"e Eoen

Economic Reco2e#$ P/n0 T"e mi/' 'e%ici! %// in 8515 #e%/ec! "i*"e# #e2en&e '&e !o ome

#eco2e#$ %#om !"e "# #e2en&e %// in 855 n' n inc#ee in !4 #!e #!ic&/#/$ VAT

'o!e' in !"e coe o% 85150 F!"e#mo#e, !"e "e'/ine 'e%ici! /o #e'&ce' .$ /#*e

one=o%% #e2en&e o#!" 10< e#cen! o% GDP, /in+e' !o !"e !#n%e# o% !"e enion %&n' o%

Po#!&*/ Te/ecom !o !"e *o2e#nmen! ec!o#0 On !"e ooi!e i'e, one=o%% co! #e/!e' !o !"e

#ec&e in 855 o% !o !#o&./e' .n+ '#**e' 'on !"e ./nce .$ 10; e#cen! o% GDP0

F!"e#mo#e, %o//oin* 'eciion o% !"e !!i!ic/ &!"o#i!ie, !"e "e'/ine %i*e %o# !"e

'e%ici! %%ec!e' .$ c"n*e in !"e *o2e#nmen! e#ime!e# !o inc/&'e n&m.e# o% &./ic=

#i2!e #!ne#"i (i!" 'e%ici! inc#ein* imc! o% 50: e#cen! o% GDP in 8515)0 T"e

8515 e4ec&!ion /o inc/&'e' !"e en'in* %o# !"e c"e o% !o &.m#ine o% 50< e#cen!

o% GDP0

0 T"e fin!n&i!l sit!tion of st!te-o$ne# enterprises 3SOEs4 ent!ils l!rge fis&!l ris0s 0

Se2e#/ SOE "2e .een !#&c!/ /o=m+e# n' "2e cc&m&/!e' /#*e 'e.!0 In #!ic&/#

!#no#! comnie (#o' mn*emen!, #i/$, .n !#no#!), .&! /o "oi!/, #e

m!!e# o% conce#n0 No!i!"!n'in* &.i'ie, o!"e# c#en! !#n%e# ("ic" #e #eco#'e'

*o2e#nmen! 'e%ici!= inc#ein*), n' ci!/ in@ec!ion ("ic" in ome ce Eo!! #&/e

//o !o .e #eco#'e' .e/o !"e /ine), !"ee comnie "2e cc&m&/!e' 2e#$ /#*e mo&n!

o% 'e.! (SOE *#o 'e.! mo&n! !o #o&n' 1: e#cen! o% GDP), "ic" ! ome !*e mi*"!

"2e !o .e !+en o2e# .$ !"e *o2e#nmen!0 In ''i!ion !o oin* #i+ !o &./ic %innce, SOE

"2e o!"e# ne*!i2e i//=o2e# e%%ec! on !"e #i2!e ec!o#> !"e$ .o#. &.!n!i/ #! o%

.n+ /en'in* !"e$ #e ./e !o imoe #e/!i2e/$ "i*" #ice %o# !"ei# e#2ice, n' !"e$ !!#c!

"i*"=+i//e' o#+e#0

0 P)li& Priv!te P!rtners"ips 3PPPs4 imp!&t on p)li& fin!n&es0 PPP "2e .een &e'

e4!eni2e/$ in Po#!&*/ !o %innce min/$ !#no#! in%#!#&c!e .&! /o o!"e# #o@ec!, &c"

"oi!/ (ee Bo4 ;)0 T"e im/ici! *o2e#nmen! /i.i/i!ie in #e/!ion !o PPP !"e ne!

#een! 2/&e o% !"e %/o o% $men! in #e/!ion !o !"e con!#c! /#e'$ i*ne' #e

c#en!/$ e!im!e' ! o2e# 1? e#cen! o% GDP0 T"ee commi!men! /imi! !"e %/e4i.i/i!$ o%

*o2e#nmen! e4en'i!e in !"e me'i&m !e#m0 T"e#e eem !o "2e .een /c+ o% 'e3&!e

cen!#/ con!#o/ %o# c#e!in* &./ic=#i2!e #!ne#"i n' #on* incen!i2e #iin* %#om !"e


15/94

%c! !"! !"e$ #e $ !o /ooen !"e .&'*e! con!#in! in !"e "o#! !e#m !"e$ #e #eco#'e',

cco#'in* !o e4i!in* !!i!ic/ #&/e, in !"e #i2!e #!ne#- ./nce "ee!0

150 T"e &orpor!te se&tor is str&tr!ll' $e!0 !n# t"e p)li& se&tor oversi5e# 0 Mi'= !o

/#*e=ie' comnie !"! e#2e in!e#n!ion/ m#+e! #e &n'e##e#een!e' in Po#!&*/7co#o#!e ec!o#, in ooi!ion !o #e'ominnce o% m// .&inee (ome o% "ic" i!"

/#*e e4!e#n/ !#'e c!i2i!$) on !"e one "n' n' /#*e comnie concen!#!e' in no=!#'./e

n' "e/!e#e' ec!o# on !"e o!"e# "n'0 Comnie %ce /#*e 'mini!#!i2e n' #e*&/!o#$

.'en, n' com/e4 !4 $!em0 B$ con!#!, !"e S!!e i &.!n!i//$ /#*e# !"n in

co&n!#ie i!" com#./e /e2e/ o% e# ci! income, n' !"e#e i i./e n&m.e# o% SOE

n' o!"e# &./ic .o'ie ! !"e m#*in o% !"e *o2e#nmen! e#ime!e#0

110 T"e perio# )efore t"e re6est for fin!n&i!l !ssist!n&e $!s m!r0e# )' nf!vor!)le

#evelopments in p)li& fin!n&es !n# ! $orsening e&onomi& otloo00 T"i /e' !o

'e!e#io#!ion o% con%i'ence n' #iin* #ee on Po#!&*&ee 'e.!, ccen!&!e' .$ !"e

ne*!i2e 'e2e/omen! in eo #e o2e#ei*n .on' m#+e!0 In #//e/, !"e .n+in* ec!o#,

"ic" i "e2i/$ 'een'en! on e4!e#n/ %inncin*, inc#ein*/$ c&! o%% %#om m#+e!

%&n'in* n' "' !o #eo#! e4!eni2e/$ !o %&n'in* %#om !"e Eo$!em0 T"e *o2e#nmen!

!ee' o&! %!e# %i/in* !o o.!in #/imen!#$ #o2/ %o# !"e S!.i/i!$ P#o*#mme in /!e

M#c"0 T"e o2e#ei*n c#e'i! #!in* o% Po#!&*/ /oe#e' e2e#/ !ime o2e# !"i e#io',n' &/!im!e/$ in!e#e! #!e #ec"e' /e2e/ no /on*e# com!i./e i!" /on*=!e#m %ic/

&!in.i/i!$0 Bo4 ? #o2i'e !"e c"#ono/o*$ o% e2en! 'in* !"i e#io'0

180 T"e intern!tion!l fin!n&i!l &risis "!# triggere# onl' ! m!rgin!l !#.stment of

e/isting im)!l!n&es !n# $e!0ene# p)li& fin!n&es frt"er0 In 8515, Po#!&*/7 GDP *#e

! #!e o% 10; e#cen!0 A/on* i!" !#on* e4o#! *#o!", !"i oi!i2e *#o!" e#%o#mnce

/o '&e !o e4ce!ion/ %c!o# !"! .oo!e' #i2!e con&m!ion, nme/$ !"e n!ici!o#$

e%%ec! o% !"e VAT inc#ee in n$ 8511 n' !"e #e/!i2e/$ /o in%/!ion '&e !o %//in*

ene#*$ #ice0 No!i!"!n'in* !"e i*ni%icn! *#o!" con!#i.&!ion o% e4!e#n/ !#'e, Po#!&*/

/o! 50 e#cen! in e4o#! m#+e! "#e in 85150 T"e '@&!men! in #ice n' co!

come!i!i2ene !oo /o !o #e'#e !"e c#en! cco&n! 'e%ici!, "ic" !i// "i*" ! 15

e#cen! o% GDP /! $e#0 T"e e+ econom$ n' !"e !ee inc#ee in &nem/o$men!,

co&/e' i!" !#on* co&n!e#c$c/ic/ %ic/ !nce in 855, i//e' in!o /#*e *o2e#nmen!

'e%ici!, .o2e 15 e#cen! o% GDP in 855 n' e#cen! in 8515, & %#om ;0: e#cen! in

8550


16/94

1;0 A#e6!te &!pit!lis!tion of )!n0s is 0e' to )olster t"e resilien&e of t"e se&tor in lig"t

of t"e #iffi&lt e&onomi& !#.stment pro&ess0 In 2ie o% !"e c"//en*in* en2i#onmen! n'

!o %!"e# en"nce !"e con%i'ence in !"e o/2enc$ o% !"e .n+in* $!em, !"e B'P i// 'i#ec!

// .n+ &.@ec! !o &e#2iion in Po#!&*/ !o #ec" co#e Tie# 1 ci!/ #!io o% e#cen! .$

en'=8511 n' 15 e#cen! ! !"e /!e! .$ en'=8518 n' min!in i! !"e#e%!e#0 In !"e e2en!

m#+e! .e' o/&!ion %i/ n' .n+ #e &n./e !o #ec" !"ee !#*e! on c"e'&/e, enin*

!"e "i*"e# ci!/ !n'#' mi*"! !emo##i/$ #e3&i#e &./ic #o2iion o% e3&i!$ %o# !"e

#i2!e/$ one' .n+0 T"e &!"o#i!ie i// !"e#e%o#e &*men! !"e .n+ &o#! %ci/i!$ !o

EUR 18 .i//ion i!" #eoce #o2i'e' .$ EU n' IMF %inncin*0 T"e .n+ .ene%i!!in*

%#om &c" e3&i!$ in@ec!ion i// .e &.@ec!e' !o eci%ic mn*emen! #&/e, #e!#&c!in*

#oce n' #e!#ic!ion in /ine i!" EU come!i!ion #e3&i#emen!0 Ac!&/ %&n'in* nee' m$,

"oe2e#, .e /oe# !"n !"i mo&n!, o# non=e4i!en!, i% .n+ #e ./e !o im#o2e !"ei#

ci!/i!ion !"#o&*" m#+e!=.e' o/&!ion0 T"e CGD *#o& i// .e !#em/ine' &!!in* in

%oc& i! co#e .n+in* c!i2i!ie, "ic" i// .ene%i! %#om ci!/ inc#ee !o .e %innce'

%#om in!e#n/ *#o& #eoce0 Some non=co#e &.i'i#ie i// .e o/' in 2ie o% o!imiin*

!"e *#o&7 e%%icienc$ n' *o2e#nnce0

1?0 In spite of t"e &onsi#er!)le !#.stment pl!nne# in t"e Progr!mme7 l!rge fin!n&ing

nee#s $ill "!ve to )e p!rtl' &overe# )' offi&i!l fin!n&i!l !ssist!n&e0 T"e %inncin* *

.e!een &ne 8511 n' Se!em.e# 851? " .een e!im!e' ! EUR J .i//ion (ee Anne4 8)0

O%%ici/ %innci/ i!nce %#om !"e EUeo #e n' !"e IMF i /nne' !o mo&n! !o ome

EUR ; .i//ion in 8511, EUR 8: .i//ion in 8518, EUR 15 .i//ion in 851;, n' EUR : .i//ion

in 851?0 A#o&n' %o=%i%!" o% !"e P#o*#mme mo&n! i// .e &e' !o co2e# &./ic ec!o#

%inncin* nee', "i/e !"e #e! i ime' ! oi./e .n+in* ec!o# &o#!0 T"e EU

con!#i.&!ion mo&n! !o !o=!"i#' o% !"e !o!/ (EUR :8 .i//ion) n' i// .e %innce' !"#o&*"

/on %#om !"e EFSM n' !"e EFSF (ee Bo4 J)0 T"e IMF /on i// .e #o2i'e' on !"e .i

o% n E4!en'e' F&n' Fci/i!$ (EFF)0

T"e emen! o% m#+e! #i+ " /on* oe' c"//en*e !o mn$ !$e o% economic *en!

n' #ee#c"e# (ee, %o# in!nce, G#n*e# (8558) %o# n o2e#2ie)0 M#+e! #i+ #ie %#om

!"e #n'om &nn!ici!e' c"n*e in !"e #ice o% %innci/ e! n' mein* i! i c#&ci/

%o# in2e!o#0 Bei'e i! in!e#e! !o o#!%o/io mn*e#, !"e emen! o% m#+e! #i+ i

#e/e2n! %o# !"e o2e#// #i+ mn*emen! in .n+ n' .n+ &e#2io#0 A/!"o&*" .n+


17/94

%i/e #e !#'i!ion//$ #e/!e' i!" n e4ce o% non=e#%o#min* /on (!"e o=c//e' c#e'i!

#i+), !"e %i/e o% !"e B#in* Bn+ in 1: "oe' "o m#+e! #i+ cn /e' !o .n+#&!c$0

F!"e#mo#e, m#+e! #i+ " #ecei2e' inc#ein* !!en!ion in #ecen! $e# .n+- %innci/

!#'in* c!i2i!ie "2e *#on0

A/!"o&*" !"e meemen! o% m#+e! #i+ " /on* !#'i!ion in %i= nnce, !"e#e i !i// no

&ni2e#//$ *#ee' &on 'e%ini!ion o% #i+0 T"e mo'= e#n !"eo#$ o% o#!%o/io n/$i '!e

.c+ !o !"e ionee#in* o#+ o% H##$ M#+oi! in !"e 1:50 T"e !#!in* oin! o% o#!%o/io

!"eo#$ #e! on !"e &m!ion !"! in2e!o# c"ooe .e!een o#!%o/io on !"e .i o% !"ei#

e4ec!e' #e!n, on !"e one "n', n' !"e 2#ince o% !"ei# #e!n, on !"e o!"e#0 T"e in2e!o#

"o&/' c"ooe o#!%o/io !"! m4imie e4ec!e' #e= !n %o# n$ *i2en 2#ince, o#

/!e#n!i2e/$, minimie 2#ince %o# n$ *i2en e4ec!e' #e!n0 T"e o#!%o/io c"oice i'e!e#mine' .$ !"e in2e!o#- #e%e##e' !#'e=o%% .e!een e4ec!e' #e!n n' #i+0 Hence, in

"i emin/ e#, M#+oi! (1:8) im/ici!/$ #o2i'e' m!"em!ic/ 'e%ini!ion o% #i+,

!"! i, !"e 2#ince o% #e!n0 In !"i $, #i+ i !"o&*"! in !e#m o% "o #e'=o&! !"e

'i!#i.&!ion o% #e!n i0

L!e# on, !"e Ci!/ Ae! P#icin* Mo'e/ (CAPM) eme#*e' !"#o&*" !"e con!#i.&!ion o%

S"#e (1


18/94

Bei'e !"e !ime=2#i!ion, #i+ mn*emen! "o&/' /o !+e in!o c= co&n! !"e 'i!inc!ion

.e!een !"e "o#! n' /on*=!e#m in2e!o# (ee, %o# e4= m/e, Cn'e/on e! /0 (855))0 In %c!,

!"e %i#! +in' o% in2e!o# i n!//$ mo#e in!e#e!e' in #i+ emen! ! "i*"e# %#e3&encie,

!"! i, "o#!=!e#m %/&c!&!ion, "e#e !"e /!!e# %oc&e on #i+ ! /oe# %#e3&encie, !"! i,

/on*=!e#m %/&c!&!ion0 An/$i ! !"e %#e3&enc$ /e2e/ #o2i'e 2/&./e oce o%

in%o#m!ion, coni'e#in* !"! 'i%%e#en! %innci/ 'eciion occ ! 'i%%e#en! %#e3&encie0

Hence, one " !o #eo#! !o !"e %#e3&enc$ 'omin n/$i !o o.!in ini*"! in!o #i+ ! !"e

%#e3&enc$ /e2e/0

In !"i e#, e #e=e4mine #i+ meemen! !"#o&*" no2e/ #oc", 2e/e! n/$i0

W2e/e! n/$i con!i!&!e 2e#$ #omiin* !oo/ i! #e#een! #e%inemen! in !e#m o%

n/$i in !"e ene !"! .o!" !ime n' %#e3&enc$ 'omin #e !+en in!o cco&n!0 In#!ic&/#, one cn #eo#! !o 2e/e! n/$i !o #o2i'e &ni%ie' %#meo#+ !o mee #i+

in !"e !ime= %#e3&enc$ ce0 A .o!" !ime n' %#e3&enc$ 'omin #e encome', one i

./e !o c!e !"e !ime=2#$in* %e!e o% #i+ "i/e 'ien!n*/in* i! .e"2io# ! !"e

%#e3&enc$ /e2e/0 In !"i $, one cn im&/!neo&/$ me= e !"e e2o/2in* #i+ e4oe

n' 'i!in*&i" !"e #i+ %ce' .$ "o#! n' /on*=!e#m in2e!o#0 A/!"o&*" 2e/e! "2e .een

mo#e o&/# in %ie/' &c" i*n/ n' im*e #ocein*, me!eo#o/o*$, n' "$ic, mon*

o!"= e#, &c" n/$i cn /o "e' %#&i!%&/ /i*"! on e2e#/ economic "enomen (ee, %o#

e4m/e, !"e ionee#in* o#+ o% Rme$ n' "n* (1


19/94

We #o2i'e n i//&!#!ion .$ coni'e#in* !"e eme#*in* m#+e! ce0 T"e ne e3&i!$ m#+e!

!"! "2e eme#*e' #o&n' !"e o#/' "2e #ecei2e' coni'e#./e !!en!ion in !"e /! !o

'ec'e, /e'in* !o e4!eni2e #ecen! /i!e#!e on !"i !oic (ee, %o# e4m/e, H#2e$ (1:),

Be+e#! n' H#2e$ (1:, 1J, 8555, 8558, 855;), G#ci n' G"$e/ (1), E!#'

(8555), De on* n' De Roon (855:), C"m.e! n' Gi.on (855), Dimi!#+oo&= /o e! /0

(8515), mon* o!"e#)0 T"e %c! !"! !"e 2o/!i/i!$ o% !oc+ #ice c"n*e o2e# !ime " /on*

.een +non (ee, %o# e4m/e, Fm (1


20/94

#eec!i2e/$)0 T"e BP coni'e# !"! !"i 'e2e/omen! i .ec&e o% n cce/e#!ion o% GFCF

e// !#on* inc#ee in e4o#! (?086 in 851: n' :6 in 851


21/94

'e%ici! in 851;, /!"o&*" !"i " "ene' %o# !"e !"i#' conec&!i2e $e# (=1;0


22/94

im#o2emen! in !"e in!e#n!ion/ in2e!men! oi!ion, n' con!#inin* ci!/ #e2en&e

#ecei2e' %#om !"e #e! o% !"e o#/'0

Since !"e .i#!" o% !"e eo, Sin- econom$ " .een .oo!e' .$ &.!n!i/ inc#ee in

%o#ei*n e! c"e, min/$ !"#o&*" %o#ei*n 'i#ec! in2e!men! (FDI)0 A #e&/! o% !"ein!e#n!ion/i!ion #oce, !"e 2/&e o% Sin- %innci/ e! .#o' #oe %#om ;:5 .i//ion

eo ! !"e en' o% !"e nine!ie !o .o2e 10; !#i//ion eo in 855J0 T"e #ecen! %innci/ c#ii

&.!n!i//$ /oe' 'on Sin in2e!men! %/o .#o' 'in* !o c/e#/$ 'i!inc!

"e> i) !"e %i#! %#om 855=8515 n', ii) !"e econ', "ic" .e*n in e#/$ 851; n'

con!in&e ! #een!, "e#e 'i2e!men!, co&/e' i!" !"e ne*!i2e 2/&!ion e%%ec!, #e&/!e' in

!"e /#*e! 'on!n o% !"e e4!e#n/ in2e!men! oi!ion in !"e /! !o 'ec'e0 Since 8518,

FDI %/o "2e .e*&n !o /o 'on, .&! !"e #e'&c!ion o% "o#! !e#m .n+ %inncin*, %%ec!e'.$ %innci/ ec!o# 'e/e2e#*in*, " /e' !"e 'ec/ine0 Ci!/ #e2en&e %#om e4!e#n/

in2e!men! "2e /o 'ec#ee', oin* #i+ !o Sin e4!e#n/ /& !"#o&*"

'e!e#io#!in* income ./nce0 Goin* %o##', !"e nee' !o #!ion/ie in2e!men! 'eciion in

!"e o!=c#ii en2i#onmen! i// con!#in !"e #eco2e#$ o% Sin in2e!men! %/o .#o'0

None!"e/e, Sni" co#o#!e "o&/' !+e !"e /e' in #e2i2in* e4!e#n/ in2e!men!, !"e

'ome!ic m#+e! no o%%e# %ee# *#o!" oo#!&ni!ie0

The Internali'ation (f The Process #efore The (nset (f The &risis

A in mo! economie, !"e %i#! "e o% Sin- in!e#n!ion/i!ion %i#! mni%e!e' i!e/%

!"#o&*" &.!n!i/ oenin* & !o !#'e &on !"e co&n!#$- cceion !o !"e EU in 1


23/94

!+e o&! o# e4n' !"ei# oi!ion in !"e in!e#n!ion/ m#+e!018T"e$ 'i' o min/$ !"#o&*"

'i%%e#en! %o#m o% %o#ei*n 'i#ec! in2e!men!0T"e ne! %/o o% e! c3&ii!ion o% Sin

.#o' #e%/ec! !"i #oce0 Acco#'in* !o '! in !"e Finnci/ B/nce S"ee! o% !"e Bn+ o%

Sin, .e!een !"e $e# 8555 n' 855J, !"e Sni" econom$ c"e' n 2e#*e o% 1;?

.i//ion eo in %innci/ e! $e# in !"e #e! o% !"e o#/' (i0e0, .o&! 10in2e!oe'i0com!e#m%%o#ei*n=o#!%o/io=in2e!men!=%i0
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24/94

2/&e o% Sin- FDI mo&n!e' !o ne#/$ ?55 .i//ion eo in 855J (;J6 o% GDP) "en i! "'

.een .#e/$ :8 .i//ion eo in 1, o# /e !"n 156 o% GDP0 Sin- !oc+ o% FDI in

#oo#!ion !o !"e ie o% i! econom$ i imi/# !o !"! o% Ge#mn$, n' /#*e# !"n !"! o%

co&n!#ie /i+e !"e US o# I!/$0Hence, i! i &e%&/ !o !+e no!e o% !"e n!e o% !"e FDI %/o

%#om Sin in !"i e#io'0 In !"e %i#! "e o% Sni" comnie- in!e#n!ion/ e4nion

%#om !"e /!e nine!ie &n!i/ 8551= 8558 !"e m@o#i!$ o% FDI 'e!ine' !o#' L!in

Ame#ic n', in #!ic&/#, !o !"e ene#*$ n' !e/ecomm&nic!ion ec!o# ( in !"e

c3&ii!ion o% !"e A#*en!inen %i#m PF .$ Reo/ in 1)0 I&e o% "#e n' e3&i!$

"o/'in*, /on* i!" !"e con!#c!in* o% .n+ /on, e#2e' !"e %&n'in* .i o% FDI in

!"oe $e#0In !"e econ' "e .e!een 8558 n' 855J, !"e Eoen Union #e/ce' L!in

Ame#ic !"e min 'e!in!ion o% Sni" FDI, cco&n!in* %o#


25/94

*oin*0 One o% !"e +e$ 'i%%e#ence .e!een !"em i !"!, in !"e %i#!, !"e #iin* 2/&!ion o%

e! .#o' o%%e! *oo' 'e/ o% !"e imc! o% 'i2e!men! in !"e !o!/ e! oi!ion

"e#e, in !"e econ', ne! e! /e "2e com.ine' i!" %// in e!- 2/&e (ne*!i2e

2/&!ion e%%ec!)0 In'ee', Sin- e4!e#n/ in2e!men! oi!ion #e*i!e#e' !"e /#*e!

'on!n in !"e /! !o 'ec'e 158 .i//ion eo , !"& cco&n!in* %o# !"e %o//oin* !"e 8518

'on!n, ne %/o min/$ non="#e one#"i in!e#e! n' i!""e/' #o%i! "2e

mn*e' !o #eco2e#, /!"o&*" !"e$ #emin %# .e/o !"e 2o/&me o% 855 851? In2e!men! C/im!e S!!emen! (&ne 851?)0


26/94

" .een inc#ein* ince /!e 851;, n' i! no !n' ! .o&! 1J .i//ion eo (10J6 o%

GDP)0

A *oo' e#%o#mnce o% !"e income ./nce i +e$ %c!o# in c"ie2in* &!in./e

im#o2emen! in Sin- e4!e#n/ /&0 T"e #e2e#/ o% !"e c#en! cco&n! ./nce %#omne*!i2e !o oi!i2e %#om mi'=851; !"e #e&/! o% !#ic! con!inmen! o% !"e !#'e 'e%ici!

n' n inc#ee in !"e e#2ice /& .#o&*"! .o&! .$ !#on* #eco2e#$ in %o#ei*n !oim

n' !"e momen!&m o% non=!oi! e#2ice e4o#! .&ine, %innci/ n' !#no#! e#2ice,

e!c0, .&! i! m$ .e "! .$ !"e o#enin* income ./nce0

A .#e+'on o% !"e c#en! cco&n! ./nce in!o i! !#&c!/ n' c$c/ic/ comonen!

#e2e/ !"! *oo' 'e/ o% !"e #e/!i2e im#o2emen! een 'in* !"e c#ii !#&c!/, o#

/on*= !e#m in n!e !"! i, i! '#i2en .$ n on*oin* con2e#*ence o% !"e in2e!men! #!e

in %i4e' e! n' !"e .n+ c#e'i!=!o=GDP #!io ! mo#e &!in./e /e2e/0 Hoe2e#, !"e

e2e#i!$ o% !"e economic #eceion /o *i2e !"e c$c/ic/ comonen! +e$ #o/e in /!e#in*

Sin- e4!e#n/ oi!ion0 A !"e &!n in c!i2i!$ !"! .e*n in /!e 851; %!"e#

cono/i'!e, !"e !#'e 'e%ici! i// !en' !o 'e!e#io#!e %#om c#en! /e2e/ oin* !o !"e "i*"

'e*#ee o% eni!i2i!$ !i// "on .$ *oo' e4o#! !o !"e !.i/i!ion o% 'ome!ic 'emn' n'

!o !"e *#o!" o% e4o#!0 T"e m#*in %o# %!"e# inc#ee in !"e e#2ice /& i /o

/imi!e'0 Cone3&en!/$, !eee# 'on!n in income o&/' !en' !o &n'e#mine !"econo/i'!ion o% !"e Sni" e4!e#n/ /&0

T"e nee' !o !#em/ine ne in2e!men! 'eciion, in ome ce, n' in mn$ o!"e# = !o

#e'&ce !"e ie o% !"e ./nce "ee!, i// con!in&e !o con!#in !"e #eco2e#$ in Sin-

%innci/ in2e!men! %/o !o !"e #e! o% !"e o#/', #!ic&/#/$ in in2e!men!

!"! en!i/ e#mnen! #eence in !"e 'e!in!ion co&n!#$0 A! !"e me !ime, !"e #eo#ien!!ion

o% .n+in* .&ine !#!e*ie ! Eoen=i'e /e2e/ n' eeci//$ in Sin mo#e

!o#' !#'i!ion/ %inncin* n' i!" /oe# #e/!i2e ei*"! o% "o/e/e %&n'in*, i//

con!in&e !o 'e!e#mine !"e e#%o#mnce o% in2e!men! in !"e ne# !e#m0 I! i %o#eee./e,

mo2in* %o##', !"! !"e .&/+ o% ne! c3&ii!ion o% %innci/ e! in !"e #e! o% !"e o#/'

i// #e/$ on !"e *ene#!ion o% 'ome!ic 2in*, n' m+e /e &e o% e4!e#n/ %inncin*

oce o% %&n'in* %o# in!e#n!ion/ e4nion0 In n$ e2en!, comnie in ec!o# "oe

#eence .#o' " /#e'$ .een cono/i'!e' n' !"! #een! oi!i2e .&ine o&!/oo+

"o&/' en' & !+in* !"e /e' in #e2i2in* e4!e#n/ in2e!men!, *i2en !"! !"e 'ome!ic m#+e!

i// o%%e# %ee# *#o!" oo#!&ni!ie !"n in !"e #ecen! !0


27/94

SLOVAKIA

Introduction

S/o2+i i o2e#ei*n !!e in Cen!#/ Eoe0 1

%innci/ #eoce n' #e/ 'emn' %o# !"e ci!/ in2e!men! in !"e %i#! "/% o% !"e 150 85

T"e !#ni!ion #oce i !$ic//$ "e2$ 'een'en! on !"e 2i/.i/i!$ o% &%%icien! !oc+ o%

ci!/ !"! !o*e!"e# i!" !"e "i*" o!en!i/ o% %&!e economic *#o!" !im&/!e' !"e

1< S/o2+ Fo#ei*n Mini!#$9, ; &ne 851;, 9UNHCR #e*ion/ c/i%ic!ion90 UNHCR0

1JC"o2nco2Y, B0 Z e! /0 (855 C#en! Acco&n! D$nmic in

OECD n' EU Acce'in* Co&n!#ie = An In!e#!emo#/ A#oc", 855?0 In> ECB Wo#+in*Pe# No0 ;11 (F#n+%!> Eoen Cen!#/ Bn+)0


28/94

in%/o o% !"e %o#ei*n ci!/081 Amon* !"e o!"e# 'e!e#minn! !"! !!#c! !"e %o#ei*n

in2e!o# !o //oc!e !"ei# ci!/ in !"e !#ni!ion co&n!#ie e cn /o men!ion +i//e' /.o#

%o#ce n' !"e in!i!&!ion/ *n!ee o% !"e %!"e# Eoen Union cceion o% !"oe

co&n!#ie088W"i/e !"e o2e#// economic e#%o#mnce in !"e .e*innin* o% !"e !#ni!ion e#io'

!i// i*ni%icn!/$ %%ec!e' .$ !"e ini!i/ economic "oc+, !"e #e/ economic *#o!" #!e

in !"e e/ec!e' !#ni!ion economie e#e #iin*/$ "i*" n' !i// e#i!08;

S/o2+i .e*n !o o&!e#%o#m i! EU nei*".o# economic//$ %!e# !"e *o2e#nmen! 'o!e'

com#e"eni2e !#&c!/ #e%o#m in 8555=855:0 T"ee #e%o#m inc/&'e' 16 %/! income

!4, "ic" /e' !"e Wo#/' Bn+ !o nme !"e co&n!#$ !"e o#/'- !o #e%o#me# in im#o2in* i!

in2e!men! c/im!e in i! 9Doin* B&ine in 855:9 #eo#!0 S/o2+i- #e/!i2e/$ /o=co! $e!

+i//e' /.o# %o#ce, /o !4e, /i.e#/ /.o# co'e n' %2o#./e *eo*#"ic /oc!ion i!"in!"e Eoen Union (EU) "e/e' S/o2+i .ecome %2o#i!e in2e!men! 'e!in!ion08?

(penness To, and Restrictions +pon, Foreign Investment

Attit#e to$!r# FPI8 T"e %/o o% FPI in!o S/o2+i " 'ec/ine' ince 855J '&e !o c"n*e

in !"e *o2e#nmen!- in2e!men! o/icie n' /e !!#c!i2e .&ine en2i#onmen! in *ene#/0

T"e in#' %/o o% FPI !o S/o2+i on/$ Fe'e#/ Ree#2e Bo#'B&//e!in, No0 5, No0 1 (in!e#), 0 1 ;10

81 FEREN\^KOV_, S0 DUD_`, T0> Fo#ei*n 'i#ec! in2e!men! in%/o imc! on !"e

economic *#o!" in !"e ne Eoen Union co&n!#ie %#om !"e Cen!#/ n' E!e#n Eoe0In> on/ o% Economic, 2o/0 :;, no0 ;, 855:, 0 8 Fo#ei*n 'i#ec! in2e!men! in%/o imc! on !"e

economic *#o!" in !"e ne Eoen Union co&n!#ie %#om !"e Cen!#/ n' E!e#n Eoe0In> on/ o% Economic, 2o/0 :;, no0 ;, 855:, 0 8


29/94

S/o2+i08: O%%ici/ Go2e#nmen! o% S/o2+i (GOS) !!i!ic 'i%%e#, mn$ U0S0

in2e!men! #e c#e'i!e' !o !"i#' co&n!#ie .e' on in2e!o#- co#o#!e !#&c!e0 Fo#

e4m/e, U0S0 S!ee/ Koice, n' !"e S/o2+=.e' oe#!ion o% Cico S$!em, De//, n'

IBM #e #e*i!e#e' D&!c" en!i!ie0 Acco#'in* !o !"e N!ion/ Bn+ o% S/o2+i, 8518

'!, !"e /#*e! %o#ei*n in2e!o# in S/o2+i in o#'e# o% ie e#e> !"e Ne!"e#/n', A&!#i,

Ge#mn$, I!/$, !"e Cec" Re&./ic n' H&n*#$08 on/ o% Economic, 2o/0 :;, no0 T"e *#e! !#n%o#m!ion o% Cen!#/ n' E!e#n Eoe> S&cce n''ioin!men!0 In> Po/i!ic/ economic, 855 W"! M+e In2e!o# O2e#ei*"! o# Un'e#ei*"!]E4/inin* In!e#n!ion/ Ae!i!e %o# Fo#ei*n E3&i!ie, 855?0 In> Fe'e#/ Ree#2e Bo#'B&//e!in, No0 5, No0 1 (in!e#), 0 1 ;10

;? Po#!%o/io in2e!men! = e4c/&'in* LCFAR (BoP = US 'o//#) in S/o2+i, 2i/./e !

a"!!>0!#'in*economic0com/o2+io#!%o/io=in2e!men!=e4c/&'in*=/c%#=.o=&='o//#=.='!0"!m/b
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32/94

economic con'i!ion in !"e Eoone in *ene#/0 T"e S/o2+ econom$ *#e 506 in #e/

GDP !e#m in 851; (e!0), i!" mo'e! *#o!" in e4o#! n' /i*"! 'ec#ee in !"e

"o&e"o/' con&m!ion n' in2e!men!0;:Unem/o$men! #emin "i*" ! 1?086, !"e i4!"

"i*"e! in !"e EU8, n' e4cee' 856 in ome #e o% e!e#n n' o&!"e#n S/o2+i0; In!e#n!ion/ %innci/ in!e*#!ion0 IMF- T"i#'Ann&/ Ree#c" Con%e#ence, No2em.e# J=, 85580 W"in*!on0

;< MISHKIN, F0> Finnci/ Po/icie n' !"e P#e2en!ion o% Finnci/ C#ie in Eme#*in*M#+e! Co&n!#ie0 fNBER Wo#+in* Pe#, No0 5J0g Cm.#i'*e, MA> N!ion/ Be& o%Economic Ree#c"0 8551

;J BRADA, 0 C0> Fo#ei*n in2e!men! n' e#ce!ion o% 2&/ne#.i/i!$ !o %o#ei*n e4c"n*ec#ie> E2i'ence %#om !#ni!ion economie0 In> Po/i!ic/ economic 855?, h0 ;, ISSN 55;8=;8;;0

; LIS, 0 MUCHOV_, E0> Fo#m!ion n' %&nc!ion/i!$ o% !"e Eoen mone!#$ &nion

!"e c"//en*e %o# !"e economic !"eo#$0 In> on/ o% Economic, 2o/0 :8, no0 ?, 855?, 0?8 ??0 ISSN 551;=;5;:0


33/94

S/o2+i Ne! Po#!%o/io In2e!men! Poi!ion i ! c#en! /e2e/ o% = Ne! Po#!%o/io In2e!men! %o# !"e S/o2+ Re&./ic, 851?>8>=:55,85,?:?0855 US Do//#, US Do//#, S&m O2e# Comonen! S&.=e#io', No!Seon//$ A'@&!e' (BPFAPI15SK


34/94

Slov!0i! Net Portfolio Investment Position Smm!r'92

L! V/&e> = NA

V/&e P#e2io&/$> =?051:B

C"n*e F#om P#e2io&> =:?$c"#!0comin'ic!o#/o2+ine!o#!%o/ioin2e!men!oi!ionb

?1 Po#!%o/io in2e!men! = e4c/&'in* LCFAR (BoP = US 'o//#) in S/o2+i a"!!>0!#'in*economic0com/o2+io#!%o/io=in2e!men!=e4c/&'in*=/c%#=.o=&='o//#=.='!0"!m/ b

?8S/o2+i Ne! Po#!%o/io In2e!men! Poi!ion,a"!!>$c"#!0comin'ic!o#/o2+ine!o#!%o/ioin2e!men!oi!ion$e#/$b


35/94

Fi#! Pe#io'> Dec 855;

Fi#! V/&e> 10?:B

Risks

Min /imi!!ion %c!o# n' !im&/& mec"nim %o# m+in* 'eciion .o&! %o#ei*n 'i#ec!

in2e!men! #e> j

1 Trading !arriers> Go2e#nmen! o/icie o%!en #o'&ce n&me#o& ime#%ec!ion on !"e

in!e#n!ion/ m#+e! o% *oo' n' e#2ice0 Go2e#nmen! cn in!#o'&ce !#i%%,

3&o! n' o!"e# #e!#ic!ion on e4o#! n' imo#! o% *oo' n' e#2ice, "ic" cn

'i./e !"ei# %#ee %/o o2e# !"e n!ion/ .o#'e#0 Some!ime, *o2e#nmen! cn /ce

.n on in!e#n!ion/ !#'e o% ome #o'&c!0 T"e im o% in!#o'&cin* !#'in* .##ie# iincome inc#ee, #o!ec!ion o% 'ome!ic econom$ e!c0 Hoe2e#, %cin* .##ie# on !"e

e4o#! o% *oo' !o !"e %o#ei*n m#+e! cn in%/&ence m&/!in!ion/ comnie !o mo2e

!"ei# #o'&c!ion in o#'e# !o 2oi' !"em0

8 a!or market> Amon* // o!"e# m#+e!, /.o# m#+e! " !"e mo! ime#%ec!ion0

L.o# m#+e! ime#%ec!ion cn /e' !o con!n! 'i%%e#ence .e!een /.o# co! in

'i%%e#en! co&n!#ie n' i*ni%icn! &n'e#2/&!ion o% !"e /.o# co! #e*#'in* /.o#

#o'&c!i2i!$0

; Internali'ing intangi!le assets transactions> M&/!in!ion/ comnie o%!en 'eci'e !o

in2e! .#o' in 'ei!e o% !"e %c! !"! /oc/ %i#m "2e ce#!in .ene%i!0 T"! men

!"! m&/!in!ion/ comnie "o&/' "2e i*ni%icn! .ene%i! o2e# /oc/ %i#m .ec&e

o% !"e in!n*i./e e! !"e$ on0 Hoe2e#, i! i 2e#$ "#' !o # & n' e//

in!n*i./e e! !o %o#ei*ne#0 Bei'e !"!, i! i 'i%%ic&/! !o +ee n' #o!ec! !"e #i*"!

on !"i e! in !"e 'e2e/omen! co&n!#ie "e#e !"e @i'ic!ion i incom/e!e0

Bec&e o% !"!, comnie &me !"! i! i mo#e #o%i!./e !o e!./i" .&ine

&ni! .#o' n' *in #o%i! %#om in!e#n/iin* !#nc!ion o% !"ee e!0

? -ertical integration> In o#'e# !o #o2i'e nece#$ in&! ! !./e #ice,

m&/!in!ion/ comnie cn in2e! in !"oe co&n!#ie "e#e in&! #e 2i/./e0 So,

m&/!in!ion/ comnie %#om #ocein* in'&!#$ n! !o oe mine n' %o#e!0

T"e$ o%!en coni'e# i! #o%i!./e !o /ce #o'&c!ion cci!ie ne# n!/ #eoce,

.ec&e !"e$ cn 2e mone$ on !#no#!!ion co!0


36/94

: Product life cycle" T"e 'emn' %o# !"e ne #o'&c! in !"e %i#! "e o% i! /i%e c$c/e

i in!n*i./e on !"e #ice n' !"e comn$ cn c"#*e #e/!i2e/$ "i*" #ice %o# i!

#o'&c!0 A! !"e me !ime, !"e comn$ con!in&o&/$ 'e2e/o i! #o'&c! cco#'in*

!o !"e %ee'=.c+ %#om !"e m#+e! in !"e "ome co&n!#$0 A !"e 'emn' %o# !"e #o'&c!

occ .#o', comnie %#om !"e USA %i#! .e*in !o e4o#! !o !"ee co&n!#ie0 Wi!"

con!in&o& 'emn' *#o!", comnie %#om !"e USA #e in'&ce' !o .e*in #o'&c!ion

.#o'0 P#o'&c! !n'#'i!ion n' c"ie2in* "e o% m!i!$ in !"e #o'&c! /i%e

c$c/e c&e c&!!in* e4ene in o#'e# !o +ee come!i!i2ene0 Fo#ei*n #o'&ce#,

"o oe#!e in !"e 'e2e/oin* co&n!#ie i!" /o #o'&c!ion co!, !#! !o e4o#!

!"ei# #o'&c! !o !"e USA m#+e!0 T"i #o./em i!" #o'&c!ion co! cn in'&ce

comnie %#om !"e USA !o .&i/' #o'&c!ion cci!ie in !"e 'e2e/oin* co&n!#ie

n' e4o#! !"ei# #o'&c! !o !"e USA0 In o!"e# o#', %o#ei*n 'i#ec! in2e!men! i 2e#$

imo#!n! in !"i ce0

< Shareholder diversification services> I% in2e!o# cnno! e%%icien!/$ 'i2e#i%$ !"ei#

o#!%o/io .ec&e o% .##ie# in in!e#n!ion/ ci!/ %/o, comnie cn #o2i'e

!"ei# "#e"o/'e# i!" in'i#ec! 'i2e#i%ic!ion e#2ice !"#o&*"o&! %o#ei*n 'i#ec!

in2e!men!0 W"en comn$ " e! in 'i%%e#en! co&n!#ie, i! c" %/o i

in!e#n!ion//$ 'i2e#i%ie', "ic" .ene%i! "#e"o/'e# o% !"! comn$ /!"o&*" !"e$

'o no! "o/' %o#ei*n "#e0

&onclusion

Riin* /e2e/ o% o#!%o/io in2e!men!, .o2e n' .e$on' "e'/ine %o#ei*n 'i#ec! in2e!men!

(FDI), &**e! inc#ee' /i3&i'i!$ %/o %#om in!i!&!ion/ in2e!o#kin !"e %i#! "/% o% 851?

o#!%o/io in2e!men! in%/o e#e mo#e !"n %o !ime !"e ie o% FPI in%/o0 T"i, in

''i!ion !o "i*"e# &!+e o% $n'ic!e' /on, "o&/' o%%e! e4ec!e' c&! in *o2e#nmen!

in2e!men! en'in*0 FPI " #o./em !oo0 T"e NBS moni!o# o#!%o/io in2e!men! !"#o&*"

#eo#! o.!ine' %#om comme#ci/ .n+ n' !"e co#o#!e ec!o#0 Reo#! #e no! $e!

2i/./e %#om e4c"n*e .#o+e#, ince !"e #o./em o% 'o&./e #eo#!in* (in com.in!ion i!"

'! %#om !"e co#o#!e ec!o#) " no! $e! .een ''#ee'0 A! #een! !"e #eo#!in*

#e3&i#emen! i !i// no! c/e#/$ 'elne' n' cone3&en!/$ !"e #e3&i#e' '! #e no! #eo#!e'

coni!en!/$ !o !"e NBS %o# !"i #eon !"e occ#ence o% 'o&./e #eo#!in* " no! $e! .een

conl#me'0 In !"e ce o% "o#!=!e#m ci!/ m#+e! #o'&c!, i! i no! oi./e !o #eco#' !"ei#

mo2emen! i!" n #o#i!e 'e*#ee o% #eciion n' !o e4c/&'e !"e oi.i/i!$ o% 'o&./e


37/94

#eo#!in*0A/!e# con&/!!ion i!" !oc+ e4c"n*e .#o+e# '! on PI in !"e co#o#!e ec!o#

m$ /o .e #eo#!e' !o !"e NBS %#om !o oce0 T"i m$ "en on cco&n! o% 'o&./e

#eo#!in*, i0e0 %#om !"e comnie conce#ne' n' %#om c&!o'in .n+ !"! "n'/e !"ei#

eci!ie0 Fo# !"e nee' o% !"e ./nce o% $men! o#!%o/io in2e!men! #e moni!o#e' in

m#+e! #ice "ic" #eec! !"e o o% mone$0 In !"i ce i% l#e #ice o% eci!ie &n'e#*o

m#+e' c"n*e 'in* !"e e#io' &n'e# #e2ie !"e#e i// .e no in%o#m!ion on !"e c!&/

2o/&me o% eci!ie0 T"e l#! "/% o% 1 %o# e4m/e :16 %// in !"e #ice o% ome

eci!ie, "ic" m$ ! m#+e! #ice *i2e !"e im#eion !"! !"e 2o/&me o% "#e 'ec/ine'0

Fo# !"! #eon, PI '! "o&/' /o .e *i2en ! con!n! #ice eeci//$ %o# o#*ni!ion

!"! moni!o# !"e 2o/&me o% eci!ie0S/o2+i i on !"e c#e! o% %#e" 2e o% &./ic

!en'e#, %o//oin* n #o2e' men'men! !o !"e e4i!in* / on &./ic #ocemen! in e#/$

Decem.e# 851?, "ic" im !o inc#ee !#n#enc$ n' come!i!ion in !"e !en'e# #oce0

SLOVENIA

Financial Framework For Foreign Portfolio Investments in Slovenia

A. eneral (verview of Foreign Investments in Slovenia:

S/o2eni i o!en!i//$ !!#c!i2e /oc!ion %o# %o#ei*n in2e!men!, .&! #een! c"//en*e !o

%o#ei*n in2e!o#0 A Eoen Union (EU) mem.e# ince M$ 1, 855? n' Eoonemem.e# ince n$ 1, 855J, i!" %&//$ mo'e#nie' in%#!#&c!e, m@o# o#! on !"e

A'#i!ic Se, n' "i*"/$ e'&c!e', #o%eion/ o#+ %o#ce, S/o2eni i n #omiin* .e

%o# .o!" ccein* !"e Cen!#/ n' So&!"=e!e#n Eoen m#+e! n' e#2in* #e/!i2e/$

/e e4eni2e *!e$ in!o EU m#+e!0?;

S/o2eni *ene#//$ e/come G#een%ie/' %o#ei*n in2e!men!, .&! o!"e# !$e o% %o#ei*n

in2e!men! o%!en %ce "'/e !"! !n' in !"e $ o% &cce0 ??T"e#e #e no %o#m/ ec!o#/

o# *eo*#"ic #e!#ic!ion !o %o#ei*n in2e!men!0 In ome economic//$ 'e#ee' n'&n'e#'e2e/oe' #e*ion, &c" !"e P#e+m@e #e*ion ne# !"e .o#'e# i!" H&n*#$,

S/o2eni o%%e# eci/ %ci/i!ie n' e#2ice e// %innci/!4 incen!i2e !o %o#ei*n

in2e!o# n' %i#m &n'e#!+in* #o@ec!0?: S/o2eni " #!ic&/#/$ e/come' "i*"=!ec"

ec!o# in2e!men! !"! c#e!e @o. n' #e /in+e' !o #ee#c" n' 'e2e/omen! (RZD)

?; /01/ Investment &limate Statement, BUREAU OF ECONOMIC AND BUSINESSAFFAIRS, &ne 8518, 2i/./e ! "!!>0!!e0*o2ee.#/o!"#ic8518118;:0"!m

??Id


38/94

c!i2i!ie, %o# "ic" eci/ !4 incen!i2e #e 2i/./e0 A/!"o&*" S/o2eni " mon* !"e

"i*"e! !4e in Eoe, !"e *o2e#nmen! in!#o'&ce' !4 c&! i*ni%icn!/$ #e'&cin* .&ine

co!, e/imin!e' $#o// !4e in 855, n' !"e co#o#!e !4 #!e /oe#e' !o 856 in

85150?0oec'0o#*ecoe$O2e#2ieS/o2eni0'%


45/94

The graph verifies the assertion made a!ove, that F*I flows in Slovenia are at an all time

low and !oth F*I inflows and outflows are etremely low.

'easons for low FDI in Slovenia:

10 P)li& o$ners"ip is l!rge8 T"e 15 /#*e! /i!e' comnie #e !!e one'0

Come!i!ion in !"e #o'&c! m#+e! i no! 2i.#n! eno&*" no!./$ !!e one#"i

i /#*e n' !"e Come!i!ion A&!"o#i!$ " .een /c+in* #eoce !o %ci/i!!e

economic '@&!men!0J8

80 ;!n0ing Crisis8S/o2eni i %cin* e2e#e .n+in* c#ii, '#i2en .$ e4cei2e #i+

!+in*, e+ co#o#!e *o2e#nnce o% !!e=one' .n+ n' in&%%icien!/$ e%%ec!i2e

&e#2iion !oo/0 M@o# !!eone' .n+ "2e .een #eci!/ie' e2e#/ !ime0

A''i!ion/ ci!/ nee' #e e4ec!e' .&! !"ei# mo&n! #emin &nce#!in !"e min

#e&/! o% e#/ie# !#e !e! n' '&e='i/i*ence n/$i "2e no! .een 'ic/oe' n'

!"ei# &m!ion #e mo! /i+e/$ o&!'!e'0 T"e c#e!ion o% !"e Bn+ Ae!

J8 OECD Economic Se$ S/o2eni, A#i/ 851;, 2i/./e !"!!>0oec'0o#*ecoe$O2e#2ieS/o2eni0'%


46/94

Mn*emen! Comn$ !o #in*=%ence imi#e' e! i e/come, .&! /c+ o%

!#n#enc$ n' o!en!i/ o/i!ic/ in!e#%e#ence oe #i+0J;

;0 Limite# Prote&tion of Minorit' S"!re"ol#ers> T"e coe o% !"e !oc+ m#+e! !o

%innce !"e econom$ i /imi!e' .$ !"e "i*" 'e*#ee o% !!e one#"i in !"e !en /#*e!/i!e' comnie n' e+ #o!ec!ion o% mino#i!$ "#e"o/'e#0 P#i2!i!ion

&o#!e' .$ !"e 'e%ini!ion o% c/e# e! mn*emen! !#!e*$, .e!!e# 'ic/oe o%

#e/!e'=#!$ !#nc!ion !o en"nce in2e!o# #o!ec!ion n' %!"e# !#en*!"enin* o%

oe#!ion/ n' %innci/ in'een'ence o% !"e Seci!ie M#+e! A*enc$ o&/' //

.o/!e# %innci/ 'eeenin* n' im#o2e o2e#// m#+e! 'ici/ine0J?

?0 Ineffe&tive Spervision )' t"e Se&rities M!r0et Agen&' 3SMA4 > A /#*e "#e o%

NPL i !!#i.&!e' !o LBO0 Hoe2e#, !"e#e #e /#*e=c/e ci#c&m2en!ion o% #&/e in

!"i #e*#' n' mn$ 'ic/oe #e no! m'e0J:

>( Poor Corpor!te Govern!n&e Norms8 Ano!"e# #i+ i #e/!e' !o e+ co#o#!e

*o2e#nnce in !"e con!e4! o% e4!eni2e &./ic one#"i, no!./$ in !"e .n+in*

ec!o# (.o&! ?56 o% .n+in* /on #e i&e' .$ !!eone' .n+ n' mo#e .n+

#e !!e=con!#o//e')0 A e+ %#meo#+ %o# !"e *o2e#nnce o% !!e=one' .n+

(SOB) in S/o2eni i /i+e/$ !o "2e con!#i.&!e' !o oo# c#e'i! !n'#', e4cei2e

#i+ !+in* .$ .n+ n' mi//oc!ion o% c#e'i!0 E4cei2e/$ %2o./e c#e'i!

con'i!ion "2e &n'e#inne' &n&!in./e me#*e# n' c3&ii!ion, mn*emen!

.&$=o&! o# .&$=o&! o% &./ic "#e ! "i*" m#+e! 2/&e0 Mo#eo2e#, #e/imin#$

%in'in* o% !"e S/o2enin Co##&!ion P#e2en!ion Commiion "2e #ecen!/$ oin!e' !o

i'e#e' c#e'i! mi//oc!ion, /i+e/$ #e/!e' !o co##&! .e"2io T"e 'ominnce o%

!!e one#"i e# !o "2e &n'e#mine' !"e 3&/i!$ o% .n+in* &e#2iion .$ !"e

Bn+ o% S/o2eni, "ic" 'i' no! !+e &%%icien! !e !o #e2en! /#*e n' connec!e'

e4oe0J


47/94

(NLB) n' No2 K#e'i!n Bn+ M#i.o# (NKBM) e4!en'e' /on mo&n!in* !o,

#eec!i2e/$, 856 n' 1:6 o% !"ei# ci!/ !o 2on En, %innci/ "o/'in* comn$,

"ic" i c#en!/$ &n'e# .n+#&!c$ #oce'e0 T"ee !o .n+ "2e /o .een

"e2i/$ e4oe' !o m@o# con!#&c!ion comnie0 T"e$ e# !o .e mon* !"e /e!

e%%icien! in S/o2eni, #!ic&/#/$ on #o%i! .i0 T"e#e "2e .een %#e3&en! c"n*e

in !"e comoi!ion o% mn*emen! n' &e#2io#$ .o#' o% !"ee .n+ n' e2e#/

c"ie% e4ec&!i2e o%%ice# "2e ci!e' o/i!ic/ in!e#%e#ence one o% !"e #eon %o# !"ei#

'eciion !o #ei*n0JJ

II( FPI Perform!n&e

FPI in S/o2eni inc/&'e !#nc!ion n' oi!ion in2o/2in* 'e.! o# e3&i!$ eci!ie, o!"e#

!"n !"oe inc/&'e' in 'i#ec! in2e!men! o# #ee#2e e!0 Po#!%o/io in2e!men!

inc/&'e e3&i!$ eci!ie, in2e!men! %&n' "#e n' 'e.! eci!ie, &n/e !"e$ #e

c!e*o#ie' ei!"e# 'i#ec! in2e!men! o# #ee#2e e!0 E5uity securitiesconi!

o% listedn' unlisted"#e0 T#nc!ion n' oi!ion in de!t securities#e 'i2i'e' .$

o#i*in/ m!i!$ in!oshort2termn' long2term.S"o#!=!e#m 'e.! eci!ie #e $./e on

'emn' o# i&e' i!" n ini!i/ m!i!$ o% one $e# o# /e0 Lon*=!e#m 'e.! eci!ie #e

i&e' i!" n ini!i/ m!i!$ o% mo#e !"n one $e#0 Since 855J, !"i i!em inc/&'e /o

e! o% 'e.! o#!%o/io in!#&men! "e/' .$ Bn+ o% S/o2eni, "ic" #e no /on*e# coni'e#e' in!e#n!ion/ #ee#2e, .&! c/im !o EMU mem.e# !!e n' c/im in EUR c#enc$ !o

// o!"e# non=#ei'en!0JSince e#/$ 1J, !"e Bn+ o% S/o2eni in!#o'&ce' mee !o c.

inc#ein* ci!/ in%/o0

Oin* !o !"e %c! !"! in2e!men! .e$on' 156 #e &!om!ic//$ FDI in S/o2eni, FPI

in2e!men! #e 2e#$ /o0 T"ee #e m&c" /ee# !"n FDI in2e!men! "ic" i!e/% i /o

J< Repu!lic of Slovenia" Financial System Sta!ility %ssessment 2 +pdate (IMF Co&n!#$Reo#! No0 5?1;J), W"in*!on, M$ 855?"!!>0im%0o#*e4!e#n/&.%!c#855?c#5?1;J0'%

JJ OECD Economic Se$ S/o2eni, A#i/ 851;, 2i/./e !"!!>0oec'0o#*ecoe$O2e#2ieS/o2eni0'%

J Slovenia2 #alance of Payments and Eternal Position, 2i/./e !"!!>0.i0ien%innci/='!=#0]MI'1


48/94

%i*e0 Ce#!in #e!#ic!ion "2e !#'i!ion//$ e4i!e' on FPI in2e!men! in S/o2eni0 T"ee

#eJ=

10 Fo#ei*n in2e!o# !o "o/' S/o2enin "#e %o# J $e# /oc+=in e#io' ("ic"

#e'&ce' !o ? $e# in 10

80 FPI "o/'e# m&! "o/' o./i*!o#$ c&!o'$ cco&n! (/!e# !"e$ e#e //oe' !o "o/'

o./i*!o#$ in!e#e! %#ee To/# 'eoi! e//)0

;0 Non=#ei'en! e#e o./i*e' !o con'&c! !"ei# o#!%o/io in2e!men! in !"e econ'#$

m#+e!=!#'e' eci!ie n' 'e#i2!i2e !"#o&*" c&!o'$ cco&n! e!./i"e' i!"

/icene' 'ome!ic .n+ e# !"e L on Seci!ie M#+e! (O%%ici/ Ge!!e o% !"e

Re&./ic o% S/o2eni, No0


49/94

0 In ce non=#ei'en! &!"o#ie no!"e# &.@ec! #!ici!in* in !"e eci!ie m#+e!

(#o4$) !o .&$ n' e// eci!ie o# e#%o#m n$ o!"e# +in' o% oe#!ion, !"e$ m&!

"n' o2e# !o !"e .n+ #i!!en &!"o#i!ion01

150 A e# !"e 'eciion o% !"e Bn+ o% S/o2eni, .n+ e#e o./i*e' !o e// n$ %o#ei*ne4c"n*e %#om .#o' %o# !"e oe o% .&$in* eci!ie n' c"e #i*"! !o

.&$ %o#ei*n e4c"n*e %i# !"e !o!/ ./nce on c&!o'$ cco&n!08

'elevant Data and Anal(sis:

T"e !#&c!e o% FPI " c"n*e' o2e# !"e ! !o $e#, i!" "i%! %#om "o/e/e %&n'in*

!o ECB /en'in*0;T"e #e/!i2e/$ .eni*n /e2e/ o% !"e ne! in!e#n!ion/ in2e!men! oi!ion

(NIIP) "i'e &n'e#/$in* e+nee0 Hi!o#ic/ NIIP '! "2e .een #e2ie', /e2in* S/o2eni

/i*"!/$ .o2e !"e ;:6 o% GDP NIIP !"#e"o/' in !"e AMR co#e.o#' !i// !"e /oe!

#e'in* %o# ne Mem.e# S!!e0 A !"i i #im#i/$ '&e !o !"e 2e#$ /o FDI !oc+, i! i in

%c! cone3&ence o% %e!e o% S/o2eni- .&ine en2i#onmen! n' "i!o#$ o% !!e=

one#"i0?Cone3&en!/$, !"e !#&c!e o% S/o2eni- e4!e#n/ 'e.!, com#iin* een!i//$

o#!%o/io n' o!"e# in2e!men!, m+e !"i oi!ion mo#e 2&/ne#./e !o .#&! c"n*e in

in2e!o# con%i'ence !"n !"e "e'/ine in'ic!o# o&/' &**e!0 T"e nee' %o# #i' #e$men!

o% "o/e/e .o##oin* .$ 'ome!ic .n+, "ic" " con!#i.&!e' !o 'e/e2e#*in*,

e4em/i%ie !"i 2&/ne#.i/i!$0 T"e 8518 IDR n/$i in !"i #eec! #emin 2/i'0 Mo#e

&cce in !!#c!in* FPI !o %innce S/o2eni- c!c"in*=& #oce o&/' ini!i//$ im/$

c#en! cco&n! 'e%ici! n' in !"e /on*e# #&n mo#e ne*!i2e .&! mo#e &!in./e NIIP0

Din* 1?=1J, m#+e! mo2emen! e#e 2e#$ 2o/!i/e n' in%/&ence' .$ c"n*e in

'emn' '&e !o o#'ic c!i2i!ie o% FPI in2e!o#0 T"ei# c!i2i!ie "oe2e#, e#e

&.!n!i//$ %%ec!e' .$ !"e imoi!ion o% c&!o'$ cco&n! %o# // FPI in e#/$ 1J0 A

#e&/!, ne! FPI e#e ne*/i*i./e n' 2o/!i/e n' !"i !#en' " con!in&e' e2e# ince0 FPI

1Slovenia #usiness aw ec0eo0e&econom$%innce&./ic!ionoccion/e#851;'%oc1?8en0'%

?Id


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"ence ne*!i2e /#*e/$, e4ce! %o# oi!i2e ne! ci!/ %/o %#om FPI oin* !o

*o2e#nmen! /cemen!, "ic" #ie' ci!/ in !"e in!e#n!ion/ m#+e! %o# *ene#/

.&'*e!#$ oe0:

Acco#'in* !o OECD in i! Co&n!#$ Reo#! on S/o2eni in 8511,


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Be' on !"i, e m+e !"e %o//oin* o.e#2!ion .o&! FPI in S/o2eni>

Ti// 855?, i0e0 "en S/o2eni @oine' !"e EU, FPI ne*!i2e 6 o% i! GDP0

F#om 855:, FPI m'e, i!" m// n&m.e# in 855: Z 855


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LEGAL AN% REG?LATOR= FRAME@ORK PERTAINING TO FOREIGN PORTFOLIO

INVESTMENT

ROMANIA

T"e Romnin /e*/ %#meo#+ enco*e o/i' come!i!ion m#+e! %o# .&ine n'

ene e3&/ in2e!men! oo#!&ni!ie .o!" %o# 'ome!ic n' %o#ei*n in2e!o#0 Gene#//$,

!"e incen!i2e o%%e#e' #e in /ine i!" !"e Go2e#nmen!7 economic "i/oo"$, n' #e #e2ie'

#e*&/#/$ !o ccommo'!e ne #e o% em"i0 Some o% !"e mo! imo#!n! *ene#/

incen!i2e o%%e#e' !o %o#ei*n in2e!o# #e !"e #i*"! %o# #e!#i!ion o% ci!/, #o%i! n'

'i2i'en' o.!ine' in Romni, !"e 'o&./e !4!ion !#e!ie en!e#e' in!o .$ Romni i!"

2#io& co&n!#ie, o%%e#in* %ic/ .ene%i! .$ !4 #e'&c!ion, /.o# #e/!e' incen!i2e n' o!"e#

incen!i2e %o# !"e oe o% !!#c!in* in2e!men!0 Wi!" #eec! !o !4 incen!i2e, %o#

e4m/e, !"e Romnin Fic/ Co'e e! %o#!" !"! !"e nn&/ /o, e!./i"e' .$ !"e !4

#e!n, i// .e #eco2e#e' %#om !"e !4./e #o%i! o.!ine' 'in* !"e %o//oin* %i2e

conec&!i2e $e#0

In2e!in* in Romni, B&ine G&i'e,"!!>02oic&%i/iec&0#o.&ine*&i'e;In2e!men!0'%0
http://www.voicufilipescu.ro/businessguide/3_Investment.pdfhttp://www.voicufilipescu.ro/businessguide/3_Investment.pdf


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Soce %o# !"e !./e> An/$e o% %o#ei*n o#!%o/io in2e!men! ! B&c"#e! S!oc+ E4c"n*e in

G/o./ Finnci/ C#ii, IBIMA B&ine Re2ie, Vo/&me 8 (855)0

DIRECTINVESTMENTWITHASIGNIFICANTIMPACTONTHEECONOM

Di#ec! in2e!men! i!" i*ni%icn! imc! on !"e econom$ #e 'e%ine' .$ !"e / .ein*

&c" in2e!men! "ic" 2/&e e4cee' !"e e3&i2/en! o% USD 1 mi//ion n' "ic" con!#i.&!e

!o !"e 'e2e/omen! n' mo'e#niin* o% Romni- economic in%#!#&c!e, !"& #e&/!in* in

oi!i2e e%%ec! on !"e econom$ n' !"e c#e!ion o% ne @o.0 On/$ 'i#ec!, ne in2e!men!

m'e .$ /i3&i' ci!/ in RON o# e4c"n*e./e c#enc$, e#%o#me' i!"in m4im&m o% ;5

mon!" %o//oin* !"e '!e o% !!i!ic/ #e*i!#!ion i!" !"e Mini!#$ o% De2e/omen! n'

P#o*noi (!o'$ !"e Mini!#$ o% Econom$) "// .ene%i! %#om !"e #o2iion o% L no0

;;885510 S&c" in2e!men! m$ .e m'e in n$ %ie/' o% c!i2i!$, e4ce! %o# !"e %innci/,

.n+in*, innce=#einnce %ie/', e// !"e %ie/' #e*&/!e' &n'e# eci/ /0

Acco#'in* !o !"e Fic/ Co'e, %o# 'i#ec! in2e!men! i!" economic//$ i*ni%icn! imc!

m'e .$ Decem.e# ;1, 855 !"e min iece o% !"i $!em i &n'o&.!e'/$

!!&!o#$ / nme/$, !"e Co'e o% Comme#ci/ Comnie , /!"o&*" /o e/%=#e*&/!ion

i .ecomin* n inc#ein*/$ imo#!n! e/emen!0

Id.


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T"e Co#e of Commer&i!l Comp!nies of *+B

T"e mo! #e/e2n! /e*/ !e4! i !"e Co'e o% Comme#ci/ Comnie o% 1< (C'i*o '

Socie''eCome#cii)5B$ #e*#o&in* 'ie#e' n' ncien! /e*i/!ion, !"i Co'e ime

!o #o2i'e */o./ n' $!em!ic #e*&/!ion on comme#ci/ comnie> 'i2i'e' in!o ei*"!c"!e#, i! con!in e! o% /e*/ #o2iion "ic" #e /ic./e !o // !$e o% comnie

(P#! I, #!0 1o !o 1J:o), #e*&/!ion %o# ec" one o% !"ee 'i%%e#en! !$e (P#! II !o P#! V)

i!" #!ic&/# em"i on !oc+ co#o#!ion (P#! IV, #!0 8J1o !o ?


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co#o#!ion (ocie''e.e#!), !"! i, o% !"oe co#o#!ion "ic" !oc+ i 'ie#e' .$

!"e &./ic, nme/$, "oe "#e #e 'mi!!e' !o !#'in* in #e*&/!e' m#+e!0 A#! %#om

e2e#/ o!"e# in'i2i'&/ no#m, !"e Co'e con!in eci/ #e*&/!ion conce#nin* !"e

'ic/oe o% !oc+ one#"i on &./ic co#o#!ion min/$, on 3&/i%ie' "#e"o/'in*

(#!icite3&/i%ic'> #!0 1 ? B&ine L$e#(1;), 18J1%%

:A/!"o&*" !"i i .$ %# !"e mo! imo#!n! e4m/e o% e/%=#e*&/!o#$ en'e2o in !"e #e o% Po#!&*&ee

co#o#!ion /, !"e#e #e /o o!"e# ini!i!i2e> ee, %o# in!nce, !"e Recommen'!ion on A.en!ee Vo!in* .$Mi/ in P&./ic Comnie, enc!e' .$ !"e CMVM in 8551 (0cm2m0!)


56/94

#o2e' !o .e #c!ic//$ inconi!en! n imo#!n! !e " .een 'one i!" !"e enc!men! o%

!"e Re*&/!ion CMVM no J8551 e2e#$ co#o#!ion i&in* "#e 'mi!!e' %o# !#'in* on #e*&/!e' m#+e! i no

#e3&i#e' !o &./i" #eo#! on co#o#!e *o2e#nnce 'ic/oin* !"e 'e*#ee o% i! on

com/ince !o !"e .o2e=men!ione' Recommen'!ionJ Acco#'in* !o #ecen! e$

imin* !o e !"e imc! o% !"e com/ince o% Po#!&*&ee &./ic /i!e' comnie i!"

!"ee #ecommen'!ion on !"ei# economic e#%o#mnce, no conc/&i2e *ene#/ #e&/! " .een

oi./e !o e!./i" (ince con!#'ic!o#$ e%%ec! "2e c!&//$ .een #o'e&ce cco#'in* !o

!"e 'i%%e#en! e! o% #ecommen'!ion ! !+e), /!"o&*" c/e# oi!i2e co##e/!ion " .een

%o&n' .e!een !"e com/ince i!" #&/e on !"e !#&c!e n' %&nc!ionin* o% !"e .o#' o%

'i#ec!o# (in #!ic&/#/$, i! e4ec&!i2e commiion) n' !"e e4ec!e' nn&/ #e!n o% !"e

co#o#!ion0

T"e Form!tion !n# M!inten!n&e of C!pit!l

T"e #oc" o% Po#!&*&ee co#o#!e / !o i&e o% ci!/ %o#m!ion n' min!ennce

!$ in /ine i!" !"e !#'i!ion/ mn'!o#$ #oc" o% Con!inen!/ /e*/ $!em0

Conce#nin* !"e %o#m!ion o% !"e ci!/, con!#i.&!ion o% "#e"o/'e# m$ on/$ coni! ei!"e#

in c" o# in +in'in !"e /!!e# ce, con!#i.&!ion m&! coni! in /e'*e' e! (#!0 85o, )

CSC) n' !"ei# 2/&e m&! .e e! o&! .$ n in'een'en! e4e#! (#!0 8o CSC)0 155 T"i#e3&i#emen! i in!en'e' !o %e*' !"e /e*/ ci!/ %#om !"e 'n*e# o% 'i/&!ion, "ic" i


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'eeme' !o .e .#o&*"! .o&! .$ con!#i.&!ion in e#2ice o# .$ !"e o2e#2/&!ion o%

con!#i.&!ion in +in'0 Hoe2e#, one m$ on'e# !o "e!"e# !"i $!em i no!

&nnece#i/$ #i*i' n' .'enome> m!!e# o% %c!, #! %#om .ein* e4eni2e,

2/&!ion o% con!#i.&!ion in +in' eem !o o2e#"oo! %#om !"e oin! o% 2ie o% !"e

&n'e#/$in* #!ion/e o% !"e / (nme/$, "e#e con!#i.&!ion coni! in e! %o# "ic" !"e#e

i m#+e! #ice, 20*0, eci!ie !#'e' in !"e !oc+ e4c"n*e) /i+eie, !"e .o/&!e #e%&/

o% con!#i.&!ion in e#2ice m$ #e2en! co#o#!ion "oe .&ine coni! #ecie/$ o%

non=m!e#i/ e! !o #eco*nie 2/&e o% #ee#c" n' inno2!ion e#2ice (nme/$, !#!=&

co#o#!ion, "i*"=!ec" .&ine co#o#!ion)0151

Once !"! !"e **#e*!e mo&n! o% e! co##eon'in* !o !"e /e*/ ci!/ " .een

i'en!i%ie' n' %o#me', !"e / #o2i'e' e2e#/ /e*/ mec"nim imin* !o #ee#2e i! %#om'i!#i.&!ion !o "#e"o/'e#, &c" #&/e on 'i!#i.&!ion o% 'i2i'en'0 158on #ec"e o%

co#o#!ion- on "#e, n' !"e /i+e0 A! #een!, #!ic&/#/$ imo#!n! mec"nim i !"e

one imoin* o#! o% mn'!o#$ minim&m #!io .e!een !"e 2/&e o% ne! e! o% !"e

co#o#!ion n' !"e nomin/ 2/&e o% i! "#e ci!/> in ce !"! !"e %o#me# 2/&e *oe

&n'e# :56 o% !"e /!!e# 2/&e, !"e mn*emen! o#*n o% !"e co#o#!ion #e o./i*e' c// %o#

*ene#/ mee!in* o% "#e"o/'e# in o#'e# !o 'eci'e /!e#n!i2e/$ !"e 'io/&!ion o% !"e

comn$, !"e #e'&c!ion o% !"e ci!/ o# !"e #e/i!ion o% ne con!#i.&!ion "ic" #e!o#e !"e

co#o#!e ne! e! ! /e! !o n mo&n! co##eon'in* !o 8; o% !"e nomin/ ci!/ (#!0 ;:o

CSC)0 A/!"o&*" imi/# #o!ec!i2e 'e2ice #e #o2i'e' %o# in !"e m@o#i!$ o% o!"e# Eoen

/015;i! imo#!nce in !"e n!ion/ con!e4! !em %#om !"e #'o4ic/ %c! !"! on/$

#ecen!/$ !"i /e*/ #o2iion o% !"e Co'e o% 1< " c!&//$.ecome in!o %o#ce, #ecie/$ !

155T"e #e/ 2/&e o% !"e con!#i.&!ion (in c" o# +in') o% ec" mem.e# "o&/' .e ! /e! e3&/ !o !"e nomin/2/&e o% !"e &.c#i.e' !oc+> !"e#e%o#e, "#e i!"o&! # 2/&e o# &n'e# # 2/&e #e #o"i.i!e'

151In con!#! !o non=c" con!#i.&!ion, !"e n!ion/ /e*i/!o# #o2i'e' #!"e# %/e4i./e $!em o% $men!%o# con!#i.&!ion in c"> %i#!/$, con!#i.&!ion m$ .e 'e%e##e' & !o n mo&n! o% J56 o% !"e nomin/ 2/&e o%!"e "#e n' %o# & !o %i2e $e# %o//oin* !"e '!e o% !"e 'ee' o% inco#o#!ion (#!0 8JJo, no 8, 8:o, no 1CSC) econ'/$, !"e $men! o% !"e i&e' "#e m&! .e 'eoi!e' in!o .n+in* cco&n! oene' in !"e nmeo% !"e comn$, #io# !o inco#o#!ion, .&! !"e / //o !"! &c" 'eoi! m$ .e #e/ce' 2/i'/$ .$ me#e

e#on/ 'ec/#!ion o% "#e"o/'e# (#!0 8JJo, no ; CSC) n' !"i#'/$, i! i e#mi!!e' !o !"e co#o#!ion !oi!"'# !"e mo&n! 'eoi!e', %!e# !"e #e*i!#$ o% !"e comn$ o# e2en !"e 'ee' o% inco#o#!ion (#!0 8JJo,no ? CSC)0

158T"ee #&/e e!./i" !#ic! #o"i.i!ion !o #e!n i' & con!#i.&!ion n' !o 'i!#i.&!e' non=#e!ine' o#"i''en e#nin* (#!0 ;1o !o ;?oCSC)

15;See #!0 8??J Co'iceCi2i/e in I!/$, u 8 A+!ien*ee! in Ge#mn$,


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momen! "e#e !"e n&m.e# o% ino/2en! n' .n+#&! comnie i #een!/$ !"e "i*"e! in

!"e /! 'ec'e015?

10 The Increase and Reduction of &apital

A ci!/ inc#ee (&men!o 'e ci!/), #e3&i#in* !"e eci%ic!ion in !"e #!ic/e o%

oci!ion n' !"& i! men'men!, i #o2e' .$ n e4#e #eo/&!ion o% !"e Gene#/

Mee!in* o% "#e"o/'e# i!" 3&/i%ie' o# &e#m@o#i!$ (co##eon'in* !o ! /e! 8; o% !"e

2o!e e4#ee'), .&! !"e #!ic/e m$ 'e/e*!e !"! 'eciion !o !"e Bo#' o% Di#ec!o# (#!0

?: #!0 ?:o CSC)0

T"i #e=em!i2e #i*"! m$ i mn'!o#$ (#!0 ? ei!"e# in i!&!ion "e#e !"e in!e#e! o% !"e co#o#!ion #e3&i#e

"#e"o/'e#- &.c#i!ion #i*"! !o .e %o#%ei!e' o# #e!#ic!e' o# "en !"e ne "#e #e !o .e

i' & .$ non=c" con!#i.&!ion (#!0 ? !"e / im/$ !!e n o./i*!ion o%!"e #!ic/e !o !i&/!e e4#e/$ !"e m4im&m mo&n! o% ec" inc#ee n' !"e c/e o% #i*"! !!#i.&!e' !o!"e "#e i&e'0

15JP#o./em 'o Di#ei!o ' Socie''e, 8;:=8::, A/me'in, Coim.#, 8558


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W"!e2e# m$ .e !"e ce, n' i##eec!i2e/$ o% .ein* /i!e' o# &n/i!e' co#o#!ion, !"e /

#e3&i#e !"e e/.o#!ion o% #i!!en #oo/ con!inin* !"e @&!i%ic!ion %o# !"e i2in* o%

#e=em!i2e #i*"! o% "#e"o/'e# n' !"e i&in* #ice o% ne "#e n' i! &n'e#/$in*

c#i!e#i015

An /!e#!ion o% !"e /e*/ ci!/ .$ $ o% ci!/ #e'&c!ion "ic" i /o &.@ec!e' !o

imi/# %o#m/i!ie (Gene#/ Mee!in* #o2/ .$ 3&/i%ie' m@o#i!$, &./ic in!#&men!,

comme#ci/ #e*i!e#) i oi./e %o# !o min oe (#!0 ?o CSC)15!o e/imin!e

e4cei2e mo&n! o% "#e ci!/ (#e'&soo#e4ceo 'e ci!/,#i'&ione 'i

ci!/ee&.e#n!e, #e'&ccin con 'e2o/&cin 'e o#!cione, #'&c!ion='i!#i.&!ion) o#

!o co2e# /oe (#i'&ione 'e/ ci!/e e# e#'i!e, #e'&ccino#e%ec!o 'e #'i',

#'&c!ion=iniemen!)

In *ene#/, !"e /e*/ $!em eem !o .e ./nce' ino%# !"e #o!ec!ion o% c#e'i!o# i

.ein* c"ie2e' !"#o&*" 'i%%e#en! $> "i/e in !"e %o#me# ce, !"e oi!ion o% co#o#!e

c#e'i!o# i 'i#ec!/$ ene' .$ !"e mn'!o#$ #e3&i#emen! o% #e2io& @&'ici/

&!"o#i!ion ("ic" m$ no! .e *#n!e' i% !"e ne! e! o% !"e co#o#!ion 'o no! e4cee'

856 o% !"e ne nomin/ "#e ci!/> #!0 :o, no1 n' 8 CSC), in !"e /!!e# ce c#e'i!o#

m$ !i// o.!in !i%c!ion .$ +in* !"e co! !o #e2en! n$ %&!e 'i!#i.&!ion o% 'i2i'en'

!o "#e"o/'e# &n/e !"e co#o#!e 'e.!o# #o2i'e !"em i!" n #o#i!e eci!$ %o#!"ei# c/im (#!0 :o, no ?, ) CSC)0115

/. oan &apital

15!"e Po#!&*&ee / #o2i'e no e4#e *&i'e/ine "!oe2e# in #e/!ion !o !"e 'e!e#min!ion o% !"e i&in*#ice o% !"e ne "#e> !"i omiion m$ @eo#'ie !"e #o!ec!ion o% mino#i!$ "#e"o/'e# ince !"e i&in*#ice "// .e %i4e' &/!im!e/$ cco#'in* !o !"e 'ic#e!ion/ &n'e#!n'in* o% con!#o//in* "#e"o/'e# n'

'i#ec!o#0

15Acco#'in* !o i! !ec"nic/ me!"o', ci!/ #e'&c!ion m$ .e c##ie' o&! /!e#n!i2e/$ !"#o&*" !"e'imin&!ion o% !"e nomin/ 2/&e o% !"e i&e' "#e, !"e 'imin&!ion o% !"e n&m.e# o% e4i!in* "#e, o# .$ !"ee4!inc!ion o% co#o#!ion- on "#e (#!0 ?o, no 1, ) CSC)0 T"e /!!e# !ec"ni3&e, "ic" i #o2i'e' %o# .$#!0 ?


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A *oo' 'e/ o% Po#!&*&ee co#o#!ion %in' i! nece#$ !o #ie %&n', no! on/$ in !"e %o#m

o% in!e#n/ e3&i!ie ("#e ci!/ &.c#i.e' .$ "#e"o/'e#), .&! /o .$ /oo+in* ! e4!e#n/

%o#m o% %inncin*, !"! i, 'e.! o# /on ci!/ #o2i'e' .$ /en'e#0111

;0 Bon'

T"e mo! #e/e2n! in!#&men! o% 'e.! ci!/ i &n'o&.!e'/$ !"e i&in* o% .on'

(o.#i*te)118, "ic" i c"#c!e#i!ic o% !oc+ co#o#!ion (#!0 ;?o !o ;J8o=B CSC)011;

Un'e# Po#!&*&ee /, !"e #e3&i#emen! %o# !"e i&in* #e !"e %o//oin*> %i#!/$, !"e cci!$

!o i&e .on' i on/$ *#n!e' !o co#o#!ion "ic" e#e inco#o#!e' ! !o o# mo#e $e#

n' "ic" "#e ci!/ " .een en!i#e/$ i'=& .$ "#e"o/'e# (#!0 ;?o, no8 n' ;

CSC)11?econ'/$, !"e 2/&e o% .on' i&e' m$ no! e4cee' !"e mo&n! o% !"e ne! o#!" o%

i'=& ci!/ "on .$ !"e mo! #ecen! ./nce "ee! #o2e' .$ !"e *ene#/ mee!in*

(#!0 ;?o, no 1 CSC)11:

&n/e !"e #!ic/e o% oci!ion en!#&! e4#e/$ !"e Bo#' o% Mn*emen! o# Di#ec!o# !o

'eci'e o, .on' i&in* m&! .e #o2e' .$ !"e "#e"o/'e# .$ im/e m@o#i!$ o% !"e 2o!e

c! (#!0 ;:5o CSC)11 ee Dec#ee=L no 1


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m#+e!, #n*in* %#om o#'in#$ .on' (*#n!in* #i*"! !o %i4e' #!e o% in!e#e! n' !o

#eim.emen! o% i! nomin/ 2/&e on m!i!$) !o in'e4e' .on' (i!" 2#i./e o#

&/emen!#$ in!e#e! 'e%ine' cco#'in* !o !"e co#o#!e #o%i!), .on' i&e' ! #emi&m

(*#n!in* !"e "o/'e# i!" #i*"! !o .on& ! !"e '!e o% .on' i&in* o# e4!inc!ion),

con2e#!i./e .on' n' .on' i!" ##n! (*#n!in* !"e "o/'e# i!" #i*"! !o con2e#ion in!o,

o# !o &.c#i!ion o%, one o# mo#e "#e), e/%=.on' (c3&i#e' .$ !"e co#o#!ion i!e/%),

&nce#!i%ic!e .on' (e/ec!#onic//$ #eco#'e'), .n+in* .on' (i&e' .$ .n+ n' in2e!men!

comnie), n' o on0

SPAIN

Leg!l Fr!me$or0 For Foreign Portfolio Investments in Sp!in

Openness to Foreign Investment

T"e#e "2e .een no i*ni%icn! c"n*e in Sin7 #e*&/!ion %o# in2e!men! n' %o#ei*n

e4c"n*e &n'e# ei!"e# !"e Soci/i! P#!$ (PSOE) *o2e#nmen! !"! !oo+ o%%ice in M#c" 855?

n' #e=e/ec!e' in M#c" 8550 Sni" / e#mi! %o#ei*n in2e!men! o% & !o 155

e#cen! o% e3&i!$, n' ci!/ mo2emen! #e com/e!e/$ /i.e#/ie'0 Din* !"e %i#! nine

mon!" o% 855, *#o %o#ei*n 'i#ec! in2e!men! in Sin ;;08 .i//ion eo, 8:5

e#cen! inc#ee o2e# !"e %i#! nine mon!" o% 855J (081 .i//ion eo)011J

T"e UK #eoni./e %o# ?5 e#cen! o% !"e in2e!men!, Ge#mn$ 8? e#cen!, !"e Ne!"e#/n' 1?0;

e#cen! n' !"e U0S0 on/$ 50J: e#cen!0 T"e &!onomo& comm&ni!$ o% M'#i' #ecei2e' ?08

e#cen! o% !"e in2e!men! n' !"e #e*ion o% C!/oni 0!!e0*o2ee.#/o!"#ic8518118;:0"!m


62/94

''i!ion/ !#&c!/ #e%o#m i% i! n! !o min!in #e2io& $e#- "i*" /e2e/ o% %o#ei*n

in2e!men!0

In A#i/ 1, !"e 'o!ion o% #o$/ 'ec#ee


63/94

.#o' eno&*" !o %&//$ !im&/!e !"e econom$0 Fo# e4m/e, in !"e !e/ecomm&nic!ion ec!o#,

mn$ n/$! .e/ie2e !"! Te/e%onic7 'ominn! oi!ion &n'e#mine come!i!ion n'

inno2!ion0 I! i %#e3&en!/$ 'i%%ic&/! %o# ne en!#n! !o *in !#c!ion in ec!o# 'omin!e' .$

%o#me# !!e=#&n monoo/ie &c" Te/e%onic0 Mo#eo2e#, in !"e ene#*$ ec!o#, !"e

*o2e#nmen! c/e#/$ '"e#e !o !"e n!ion/ c"mion conce!, %o# in!nce in i! &cce%&/

e%%o#! !o ene !"! con!#o/ o% e/ec!#ici!$ *in! En'e #emine' in Sni" "n', ! /e!

#!i//$

Conversion !n# Tr!nsfer Poli&ies

T"e#e #e no con!#o/ on ci!/ %/o0 In Fe.#$ 18, #o$/ 'ec#ee 11.oo+0*oo*/e0co0in.oo+]i'DeS!$8OWWCZ*PA8Z/*PA8Z'3/o2eniFPIZoce./Zo!S2RJ

N


64/94

Le*i/!ion e!./i"e mec"nim !o o/2e 'i&!e i% !"e$ #ie0 T"e @&'ici/ $!em i oen

n' &&//$ !#n#en!, /!"o&*" /o=mo2in* ! !ime0 T"e Sni" @&'ici/ $!em i

in'een'en! o% !"e e4ec&!i2e !"e#e%o#e, !"e *o2e#nmen! i o./i*e' !o %o//o co! #&/in*0

&'*e #e in c"#*e o% #oec&!ion n' c#imin/ in2e!i*!ion, "ic" e#mi! *#e!e#

in'een'ence0 T"e Sni" #oec&!ion $!em //o %o# &ccei2e e/ !o "i*"e#

Co! o% &!ice0 T"e Eoen Co! o% &!ice cn "e# !"e %in/ e/0 In ''i!ion, !"e

Go2e#nmen! o% Sin .i'e .$ #&/in* o% !"e In!e#n!ion/ Co! o% &!ice ! T"e H*&e0

Sin i mem.e# o% .o!" !"e In!e#n!ion/ Cen!e# %o# !"e Se!!/emen! o% In2e!men! Di&!e

(ICSID) n' !"e Ne o#+ Con2en!ion o% 1: on !"e Reco*ni!ion n' En%o#cemen! o%

Fo#ei*n A#.i!#/ A#'0

Con!#c!&/ 'i&!e .e!een Ame#icn in'i2i'&/comnie n' Sni" en!i!ie #eno#m//$ "n'/e' #o#i!e/$0181T"e#e i no U0S0=Sin *#eemen! on !"e m&!&/

#eco*ni!ion o% @&'*men!, o U0S0 ci!ien ee+in* !o e4ec&!e Ame#icn co! @&'*men! in

Sin m&! %o//o Sni" /, in !"i in!nce com/ic!e' #oce'e +non !"e

e4e3&!o# #oce0 In /i*"! o% !"e Em.$- ! e4e#ience in !!em!in* !o i!

Ame#icn ci!ien c/imn! i!" !"e #oce, !"e Em.$ #ecommen' !"! Ame#icn "o

conc/&'e con!#c! i!" Sni" en!i!ie eci%$in* !"e U0S0 !"e 2en&e %o# '@&'ic!in*

'i&!e /o come !o n *#eemen! #e*#'in* "o oi./e U0S0 @&'*men! i// .e e4ec&!e'

in Sin0

Sin " %i# n' !#n#en! .n+#&!c$ #e*ime0 In &ne 855;, !"e Sni" P#/imen!

#o2e' ne, mo'e#n .n+#&!c$ / !"! en!e#e' in!o %o#ce on Se!em.e# 1, 855?0

Perform!n&e Re6irements !n# In&entives

Pe#%o#mnce #e3&i#emen! #e no! &e' !o 'e!e#mine !"e e/i*i.i/i!$ o# /e2e/ o% incen!i2e*#n!e' !o in2e!o#0 A #n*e o% in2e!men! incen!i2e e4i! in Sin, n' !"e$ #e #o2i'e'

cco#'in* !o !"e &!"o#i!ie *#n!in* incen!i2e n' !"e !$e n' oe o% !"e

incen!i2e0A&!"o#i!ie !"! #o2i'e incen!i2e in Sin>

10 T"e Eoen Union>

181(E&* Economic Surveys Spain, %pril /01;, 2i/./e !"!!>0oec'0o#*ecoe$O2e#2ieSin0'%


65/94

T"e Eoen Union #o2i'e incen!i2e in !"e %o#m o% &.i'ie in *ene#/ 'e2e/omen!

#o*#m &c" FEDER n' F0S0E0 FEOGA Gn!ee0 T"e$ /o #o2i'e #o*#m !o

!#*e! eci%ic ec!o# &n'e# !"e EU Si4!" F#meo#+ P#o*#mme0 T"e Go2e#nmen! o% Sin

mn*e !"ee incen!i2e /oc//$0 Hoe2e#, mn$ .ene%i! %#om EU=ono#e' #o*#m #e

/imi!e' !o comnie /oc!e' in !"e Eoen Union0 T"ee incen!i2e i// .ecome /e

%innci//$ i*ni%icn! o2e# !"e comin* $e# Sin7 inc#ein* e/!" n' EU

en/#*emen! i// /e' !o m//e# "#e %o# Sin o% !"e EU7 *ene#/ 'e2e/omen!

#o*#m0188

80 T"e Cen!#/ Go2e#nmen!>

0 T"e cen!#/ *o2e#nmen! *#n! incen!i2e o&! o% i! nn&/ .&'*e!0 U&//$, !"ee incen!i2e

m!c" EU %inncin*0 Cen!#/ *o2e#nmen! incen!i2e #o*#m #e ei/$ 2i/./e %o# 'i#ec!

in2e!men! /n0 T"e Mini!#$ o% Econom$ n' Finnce n' Mini!#$ o% In'&!#$, Toim

n' Comme#ce /$ c!i2e #o/e in *#n!in* !"e incen!i2e0

.0 T"e Fo#ei*n In2e!men! De#!men!, &n'e# !"e Mini!#$ o% In'&!#$, Toim n' T#'e,

co&ne/ ne m#+e! in2e!o# in !"e /ic!ion %o# *o2e#nmen! incen!i2e0 T"e Mini!#$ o%

In'&!#$7 ec!o#=#e/!e' 'e#!men! ne*o!i!e 'i#ec!/$ i!" !"e o/' m#+e! in2e!o# !o

in%o#m !"em o% incen!i2e 2i/./e %o# ne in2e!men!0

;0 T"e Re*ion/ Go2e#nmen!>

T"e 1J #e*ion/ *o2e#nmen!, c//e' A&!onomo& Comm&ni!ie, /o min!in eci%ic

#o*#m !o !!#c! in2e!men!, "ic" #e o%!en 'ei*ne' !o com/emen! cen!#/ *o2e#nmen!

incen!i2e0

?0 M&nici/i!ie>

!0 M&nici/ co#o#!ion o%%e# incen!i2e !o 'i#ec! in2e!men! .$ %ci/i!!in* in%#!#&c!enee', *#n!in* /icene, n' //oin* %o# !"e oe#!ion n' !#nc!ion o% e#mi!0 U&//$

!"e$ #e 'ei*ne' !o "e/ ee !"e ini!i/ oe#!ion o% 'i#ec! in2e!men!0

)0 Gene#//$, !"e #e*ion/ *o2e#nmen! #e #eoni./e %o# !"e mn*emen! o% ec" !$e o%

in2e!men!0 T"i #o2i'e .ene%i! !o in2e!o# ec" &!onomo& comm&ni!$ "

eci%ic in!e#e! in !!#c!in* in2e!men! !"! en"nce i! econom$0

188/01/ Investment &limate Statement, BUREAU OF ECONOMIC AND BUSINESSAFFAIRS, &ne 8518, 2i/./e ! "!!>0!!e0*o2ee.#/o!"#ic8518118;:0"!m


66/94

&(T$e o% incen!i2e 2i/./e>

x Finnci/ &.i'ie

x E4em!ion %#om ce#!in !4e

x P#e%e#en!i/ cce !o o%%ici/ c#e'i!

x Re'&c!ion o% .'en, i!" oci/ eci!$ 'ico&n! !o comnie

x Bon&e %o# c3&ii!ion o% ce#!in m!e#i/

x C&!om e4em!ion %o# ce#!in imo#!e' *oo'

x Re/ e!!e *#n!, n' *#!&i!o& o# %2o#./e /n' *#n!

x Gn!ee *#n!e' in c#e'i! oe#!ion

x Lon i!" /o in!e#e!, /on* m!i!ie, n' *#ce e#io'

x Gn!ee o% 'i2i'en'

x P#o%eion/ !#inin* n' 3&/i%ic!ion

x In'i#ec! i' .$ men o% &/$in* in%#!#&c!e %ci/i!ie (ccee, e#2ice,

comm&nic!ion, e!c0)

#0 Incen!i2e %#om n!ion/, #e*ion/ o# m&nici/ *o2e#nmen! n' !"e EU #e *#n!e' !o

Sni" n' %o#ei*n comnie /i+e i!"o&! 'ic#imin!ion0

e( Sin i in com/ince i!" i! WTO TRIMS fT#'e=Re/!e' In2e!men! Meeg

o./i*!ion0

Rig"t to Priv!te O$ners"ip !n# Est!)lis"ment

T"e Con!i!&!ion #o!ec! #i2!e one#"i0 Sni" / e!./i"e c/e# #i*"! !o #i2!e

one#"i, n' %o#ei*n %i#m #ecei2e !"e me /e*/ !#e!men! Sni" comnie0T"e#e i

no 'ic#imin!ion *in! &./ic o# #i2!e %i#m i!" #eec! !o /oc/ cce !o m#+e!,

c#e'i!, /icene n' &/ie0 Ame#icn con!#&c!ion comnie no!e, "oe2e#, !"! !"e$ "2e

no! .een ./e !o in &./ic ec!o# con!#&c!ion con!#c!0 T"e$ "2e, "oe2e#, on #i2!eec!o# con!#&c!ion con!#c!0


67/94

Prote&tion of Propert' Rig"ts8

Sni" / #o!ec! #oe#!$ #i*"!, i!" en%o#cemen! c##ie' o&! ! !"e 'mini!#!i2e n'

@&'ici/ /e2e/0 An$ 'eciion .$ !"e A'mini!#!ion e#!inin* !o #oe#!$ #i*"! cn .e

e/e' %i#! ! !"e 'mini!#!i2e /e2e/ n' !"en ! !"e @&'ici/ /e2e/, "ic" " !"#ee /e2e/o% co! e/0 P#oe#!$ #o!ec!ion i e%%ec!i2e in Sin, /!"o&*" !"e $!em i /o0 T"e

Sni" /e*/ $!em %&//$ #eco*nie #oe#!$ #i*"! n' %ci/i!!e !"ei# c3&ii!ion n'

'ioi!ion0 Mo#!**e #e common in Sin0

Sni" !en!, co$#i*"!, n' !#'em#+ / // #o4im!e o# e4cee' EU /e2e/ o%

in!e//ec!&/ #oe#!$ #o!ec!ion0 Sin i #!$ !o !"e P#i Con2en!ion, Be#n Con2en!ion,

!"e M'#i' Acco#' on T#'em#+, n' !"e Uni2e#/ Co$#i*"! Con2en!ion0 Sin "

#!i%ie' !"e Wo#/' In!e//ec!&/ P#oe#!$ O#*ni!ion7 (WIPO) Co$#i*"! T#e!$ (WCT) n'

!"e WIPO P"ono*#m n' Pe#%o#mnce T#e!$ (WPPT), !"e o=c//e' In!e#ne! !#e!ie0 In

855


68/94

e#cen! o% !"e Sni" m#+e!, i!" i#!e' 2e#ion o% ne #e/ee #oc"in* :5 e#cen!0

Pi#!e' o%!#e, 2i'eo*me n' DVD #e /o o/' i'e/$0

0 P!en!0

A non=#ene./e 85=$e# e#io' %o# o#+in* !en! i 2i/./e i% !"e !en! i &e' i!"in

!"e %i#! !"#ee $e#0 Sin e#mi! .o!" #o'&c! n' #oce !en!0

Sin " #!i%ie' !"e 1J; M&nic" Eoen P!en! Con2en!ion //oin* Sin !o .e

'ei*n!e' in Eoen !en! /ic!ion0 Eoen !en! #e 'mini!e#e' .$ !"e

Eoen P!en! O%%ice, .e' in M&nic" (Ge#mn$)0

.0 Co$#i*"!0

T"e / e4!en' co$#i*"! #o!ec!ion !o // /i!e##$, #!i!ic o# cien!i%ic c#e!ion, inc/&'in*

com&!e# o%!#e0 Sin n' !"e Uni!e' S!!e #e mem.e# o% !"e Uni2e#/ Co$#i*"!

Con2en!ion0

c0 T#'em#+0

T"e#e #e 2#io& #oce'e !o #e*i!e# !#'em#+ in Sin0 T"e Sni" O%%ice o% P!en!

n' T#'em#+ o2e#ee #o!ec!ion %o# n!ion/ !#'em#+0 T#'em#+ #e*i!e#e' in !"e

In'&!#i/ P#oe#!$ Re*i!#$ #ecei2e #o!ec!ion %o# 15=$e# e#io' %#om !"e '!e o%

/ic!ion, "ic" m$ .e #enee'0 P#o!ec!ion i no! *#n!e' %o# *ene#ic nme, *eo*#"ic

nme, !"oe !"! 2io/!e Sni" c&!om o# o!"e# in#o#i!e !#'em#+0 A/icn! m&!

'ei*n!e !"e co&n!#ie "e#e !"e$ i" !o o.!in #o!ec!ion0 T"e Wo#/' In!e#n!ion/

P#oe#!$ O#*ni!ion (WIPO, "e'3!e#e' in Gene2) o2e#ee n in!e#n!ion/ $!em o%

#e*i!#!ion0 Hoe2e#, !"i $!em on/$ /ie !o U0S0 %i#m i!" n e!./i"men! in

co&n!#$ !"! i #!$ o% !"e A*#eemen! o# !"e P#o!oco/0

Tr!nsp!ren&' of Regl!tor' S'stem

Sin mo'e#nie' i! comme#ci/ / n' #e*&/!ion %o//oin* i! 1< en!#$ in!o !"e EU0

I! /oc/ #e*&/!o#$ %#meo#+ com#e %2o#./$ i!" o!"e# m@o# Eoen co&n!#ie0

Be&c#!ic #oce'e "2e .een !#em/ine' n' m&c" #e' !e " .een e/imin!e',


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!"o&*" e#mi!!in* n'

ideal destination of pfi in some european countries

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