Strategic Planning

European Business by Neil Harris (auth.)

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By Neil Harris (auth.)

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It is important to note how EU unemployment has remained at around 11 per cent for most of the 1990s, demonstrating structural economic problems in a number of EU countries including France, Italy and Spain. Germany has also contributed to the high EU figure with the rise in its unemployment in the 1990s partly reflecting the absorption of former East Germany and the shedding of labour by businesses following the large-scale privatisation programme effected by the government-created agency, the Treuhand.

_... ···:·· ..... ···us 4 .. 2 '•, ········· ···· ··· ··· ... · ....... . · · · ···:· ·· ··· · · · · Japan QU-~--~~~--~~--~~~--~~~~~~ 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 Year Data from OECD, Economic Outlook, December 1997, no. 62. Copyright OECD, 1997. 5 Unemployment rates, 1985-99: selected EU countries and competitors 24 European Business However, although changing slowly, Japanese business culture still largely expects to provide jobs for life. Japan's high employment figures are also helped by high investment rates, close financing links between businesses and banks (often parts of the same conglomerate), and a long-term perspective rather than the short-term profitability focus of western businesses.

It is based on the key treaties - the Treaty of Rome 1957, the Single European Act 1987, the Treaty of Maastricht 1993, and the most recent Treaty of Amsterdam 1998; the regulations, directives and so on passed by the Council and the Commission (see Chapter 2); and case law through the interpretations of the European Court of Justice. All of these will directly affect European businesses. EU law is based on the codified law model (either Napoleonic or developed individually) because this is the legal system used by the original EC6, although it has had to adapt as new countries have brought in new legal systems, for example the UK.

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