LKN Global

The European Union (EU) is a political and economic union of 27 member states, located primarily in Europe. The EU has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It maintains:

Common trade policy
Agricultural and fisheries policies
Regional development policy
Fifteen member states have adopted a common currency, the euro.

The EU combined generates an estimated 30% share of the world's nominal gross domestic product.

Austria (top)

Austria is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The Austrian economy has consistently performed better than the EU average over the past ten years. Growth has been broadly based, driven by both consumer spending and investment. Foreign investment and market expansion are welcomed to continue this growth .

Tourism remains the country's largest single industry and biggest foreign-exchange earner. The Austrian economy has consistently performed better than the EU average over the past ten years. Growth is broadly based, driven by both consumer spending and investment. The country's export-oriented manufacturing sector is a major economic driver and seeks further expansion.

Belgium (top)

Bulgaria (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member is of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

In 2006, 63.5% of the total population completed secondary school and 10.9% had completed a higher education creating a large Bulgarian skilled workforce population. Additionally, the country has lower wage costs than most of the E.U. making it attractive to expanding foreign companies .

A pipeline connecting the Bulgarian Black Sea port of Burgas with the Albanian Adriatic port of Vlore is under construction and expected to be operational by 2011 . The project is estimated to cost US$1.2 billion. Bulgaria is also increasing its natural gas transit capacity. Presently, Russian gas passes through the country but the country could become a transit base for Iranian gas in the future. The government is pressing ahead with plans for a €6 billion nuclear power plant on the Danube to replace capacity lost by EU-ordered closures of reactors from the communist era .

Tourism holds promise, especially sites along the Black Sea coast. The EU has also earmarked €25 million for the technological modernization of small and medium-sized enterprises. This creates opportunity for foreign companies looking to expand in tourist and technology .

Agriculture accounts for 6.6% of GDP. Bulgaria has the potential to become a major agricultural supplier for all of Central Europe, but its farms need foreign investment to assist further development .

Cyprus (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

Cyprus is rich in human capital, with large numbers of Greek-Cypriots having advanced degrees from foreign universities. This is attractive for companies looking to expand across borders .

Cyprus' thriving offshore sector is a valuable source of foreign exchange. The tax system is being modernized and a uniform corporate tax rate of 10% has been introduced, which implies a reduction in the taxation of profits. The island has more than 32,000 registered offshore companies and approximately half of them are active. Initiatives are underway to strengthen financial sector regulation and supervision, and align them to EU standards. The country also has the fourth largest ship register in the world .

The manufacturing sector accounts for 9% of the GDP includes food and beverages, clothing, furniture and metal products. Other industrial sectors, which continue to expand, include printing and publishing, plastics, chemical and pharmaceutical products .

Denmark (top)

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The country enjoys some of the highest living standards of all Western European countries and has one of the most equal distributions of income. Taxes were cut in 2008 and 2009 and the banking system has been recapitalized. These moves were intended to support the country's flagging domestic demand .

The country maintains an "open door" policy towards oil companies. Under this policy, oil companies are invited to bid for licenses in specified acreage and are not required to commit to drilling wells before seismic work has been completed. As part of EU efforts to create a single market for energy, Denmark has completely liberalized its market for electricity .

Denmark's total oil production is about 313,000 barrels per day. The discovery of new fields haS helped to bolster output. This has created opportunity for foreign investment .

The government plans to boost spending on infrastructure. Improvements in the subway systems in major cities during 2008-2012 are expected to cost US$2.4 billion. In the manufacturing sector, engineering, food processing, pharmaceuticals and brewing are among Denmark's most successful industries. Biotechnology is also making strides but even more important is the country's elaborate infrastructure for information technology .

Agriculture consists of thousands of mainly small farms supplying pig meat products, dairy goods and cereals such as wheat and barley. Farmers are bound by special legislation requiring safe storage and treatment of wastes.
This creates the desire to do business and expand foreign market share.

Estonia (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

Estonia is positioning itself as a major transit centre for oil exports from Russia and the newly independent states to Europe. The country's ports at Tallinn and Muuga have become major terminals for the export of petroleum products from the former Soviet Union. Ease of transportation make the country attractive for market expansion.

The manufacturing sector is sizeable, accounting for 16.6% of GDP in 2009. It depends on well-established engineering, machine-building and textile industries, along with consumer goods and food-processing industries. Estonia's close ties with Scandinavian countries provide ready-made markets for some of its products, as well as a source of capital and technological know-how .

Estonia's banking system is financially sound however the euro adoption still remains a key objective. This creates an attractive business environment.

More than three million tourists visit the country each year, a majority of them from Finland. This creates opportunity to attract other foreign countries to participate in the tourism industry .

Estonia has substantial deposits of minerals, including phosphate and oil shale, as well as extensive forest resources. The latter benefit greatly from Scandinavian investment and should soon provide a substantial resource base for development of competitive industries in the fields of timber, paper and paper products. Foreign investment could be used to fully development all of the industries,

Finland (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

Various policy changes have improved the business environment in the past few years. Tax cuts have helped sustain demand, which include corporate taxes and income taxes. This creates a more attractive business environment.

By 2015, Finland will have the largest percentage of its population over the age of 65, which is 20% of its population, of any EU member state. This creates opportunity foreign companies who target this demographic .

Tourism is an underdeveloped part of the service sector and seeks foreign investment. Tourist activities account for approximately 8.2% of total employment. The government plans to channel resources into this industry over the next several years with the goal of developing a year-round appeal. Officials hope to boost the sector's share of GDP by another 3 percentage points by 2013 .

Finland is currently the only EU member that is expanding its nuclear capacity. It plans to bring a new 1,600-MW reactor online .

Helsinki dropped its restrictions on migrant workers. Estonians, who enjoy a language advantage over other recent EU entrants, are likely to be the biggest beneficiaries.

In manufacturing, forestry accounts for almost 30% of exports and a sizeable portion of GDP. Finland claims around a third of Western Europe's total capacity in the forestry industry and is the world's second largest exporter of paper products behind Canada .

The electronics industry is dominated by Nokia which contributes more than a quarter of all exports and a significant portion of GDP. Most of the manufacturing sector is strongly oriented toward research and development and spends substantial sums in this endeavor, which opens opportunity for foreign investment .

France (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

France has the largest Muslim population in Europe. Therefore, France is pushing hard for closer ties between the EU and Middle East countries . It is also the largest country in Western Europe and lies at the heart of the continent, which makes creates much opportunity for foreign opportunity.

Manufacturing contributes about three-quarters of total exports of goods and services. The manufacturing sector's greatest strengths are in motor vehicles, pharmaceuticals, transport equipment and aerospace. The country's two major carmakers are Peugeot and Renault.

France is the EU's largest producer of cereals. Farms are small however the soil quality is usually excellent. The country also grows soft fruits, cereals, maize, root vegetables, sugar beet, cattle and poultry, and is famed for its wine production .

The new Law for the Modernization of the Economy raises tax exemptions to 50% of the cost of innovation projects, creating the most attractive fiscal regime in Europe for R&D. New cuts on local business taxes are under consideration. These would encourage investment decisions in 2010. Also to strengthen labor market performance, subsidies are now offered to employers who hire people on protracted income support .

France has about 341 billion cubic feet (Bcf) of proven natural gas reserves. The country is also the world's largest nuclear power generator on a per capita basis, and ranks second in total installed nuclear capacity, behind the USA. Due to the lack of domestic oil sources, the French government has encouraged the use of nuclear power as an alternative energy source to oil where possible .This creates foreign investment and market expansion opportunities.

Germany (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

The federal government is committed rebuild eastern Germany therefore transfers roughly €80 billion in welfare and reconstruction funding to the east every year until 2019. This puts a burden on the government but creates the need for foreign investment .

Germany is a world leader in developing renewable energy. In 2000, the government set a goal to double the proportion of renewable energy sources by 2010. By 2050, half of Germany’s entire energy demand should be met by solar, wind, biomass, hydro, and geothermic sources, according the German government .

Germany's manufacturing sector accounts for nearly 23% of GDP. Output began to rise in the fourth quarter of 2009 as exports strengthened. The sector is dominated by large companies producing motor vehicles, precision engineering, brewing, chemicals, pharmaceuticals and heavy metal products. Automotive producers employ one in every seven workers .

An overhaul of the income tax system is expected in 2010. The changes will reduce the overall tax burden, along with tax cuts.

Germany has the largest proportion of foreigners of any country in the EU, which accounts for 9% of the population but has traditionally refused to see itself as a place where migrants settle. New laws will make it easier for skilled immigrants to enter the country and get work permits .

Greece (top)

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The Greek economy has outperformed that of most other industrialized countries during this decade. Per capita income is now around 90% of the EU-15 average. In 2006, the government finally opened the sector to foreign investment by approving a €1.2 billion investment by a British company which plans an integrated resort on Crete. Tax cuts for business, new investment incentives and growth in southeast Europe have spurred investment .

Under pressure from Brussels, the government has introduced a series of reforms aimed mainly at meeting the criteria for Eurozone members. Officials have cut tax rates for small companies and reduced taxes on undistributed corporate profits. Personal income taxes were also cut. The new rates will make Greece more competitive with low-tax countries in central and southeast Europe as a destination for FDI. The authorities have also simplified business licensing procedures for industrial enterprises, made some reforms in the operation of state-owned firms and plan to accelerate the pace of privatization .

Agriculture employs a quarter of the population but accounts for only a small portion of GDP. The main products are tree fruits, vegetables, olives, tobacco, sugar, rice and wheat. Nursery products, frozen fish, tree nuts and wood products are among the fastest growing industries in this sector. The country's main agricultural exports are fresh and processed fruits and vegetables, especially canned peaches and tomato products, olive oil, durum wheat and tobacco .

The fertility rate is one of the lowest in the world and the work force is ageing rapidly. This creates opportunity for foreign companies with this demographic as its target market .

Hungary (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

GDP per capita was 69% of the EU average in 2006, which measured is purchasing power parity terms, up from 59% in 2000.This indicates that the economy is growing and is an important asset to the EU .

Services, including financial services, advertising and retailing, are all becoming more competitive and customer friendly. More than 70% of the country's manufactured exports come from foreign-owned plants set up by IBM, Philips and others. In the automotive industry, major companies including Ford, General Motors, Audi, and Suzuki have established multi-million dollar plants .

As part of the agricultural industry, the wine industry, with the help of foreign investors, has made real progress and gained market share in Western Europe. Agricultural exports have been rising and presently amount to well over €3 billion.

Hungary is the largest producer of crude oil in Central Europe. Presently, the country is producing about 45,000 barrels per day (bbl/d). Most of this comes from small fields in amounts less than 2,000 bbl/d. Oil reserves are approximately 127 million barrels. Oil companies have increased domestic exploration, estimating that only 60% of the country has been thoroughly explored, which creates foreign opportunity .

Iceland (top)

Ireland (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The “Irish miracle” was built on the country's low-tax regime and other advantages such as English language and well-trained workers. These elements will continue to be positive features in attracting foreign investment. Dublin has implemented tax cuts of €680 million and an additional €880 million in social welfare spending .

The economy has performed better than any other OECD country throughout most of this decade. Especially during 2000-2007, government spending rose steadily with a 40% increase in public sector employment .

The government launched an expensive, seven-year program to improve infrastructure and facilities. The government has plans for large-scale investment in infrastructure throughout the remainder of this decade .

Italy (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

Italy is Europe's third largest oil importer. There are three main oil-producing fields in southern Italy and other fields located offshore in the Adriatic and in Sicily. There are large oil refining facilities along the Mediterranean coast and on Mediterranean islands, capable of processing a wide range of crude oils from North Africa and the Persian Gulf .

The agricultural sector is small but well diversified, producing soft fruits and vegetables, as well as wheat, olives and citrus products for export. The most fertile areas are in the north. This creates opportunity for market expansion, especially in the northern regions of the country.

There are relatively few large private companies, but those that exist play a major role in the economy. Example of such companies are Fiat, which is controlled by the Agnelli family; Pirelli, controlled by the Pirelli family; and Fininvest, controlled by the former Prime Minister, Berlusconi. More than 90% of the industrial sector is made up of small and medium-sized firms .

The government has pushed through limited reforms to the country's pension system, such as a new law to rise the retirement age from 57 years to 60 years. This should save the treasury about 0.7% of GDP per year and creates more of a labor pool and more possible opportunities for foreign investment .

Latvia (top)

Lithuania (top)

Luxembourg (top)

Malta (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The semi-conductor industry is the most important part of manufacturing, typically accounting for about three-quarters of the sector's exports. The economy has also enjoyed productivity gains, a rise in foreign investment and some measure of export diversification. Officials hope to convert the island into a center for trans-shipment throughout the Mediterranean.

The country's main earner of foreign exchange is tourism. In most years the sector accounts for 20-30% of GDP. About one million people visit the island in a typical year and an estimated 35,000 people, which accounts for one-tenth of the island's total population, are directly or indirectly employed in tourism .

Agriculture is the second most important foreign exchange earner after tourism with exports of fruits, vegetables, wheat, grapes and horticultural products, especially cut flowers .

Foreign investors are attracted by the tax regime which allows income tax on dividends to be offset against corporate tax. The government cut the tax burden creating more attraction for foreign investment .

Netherlands (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

Rotterdam is Europe’s largest port, handling more than twice as much cargo as its nearest European rival, Antwerp. The port’s industrial and distribution activities generate annual added value equivalent to around 10% of Dutch GDP. There are also a large number of coastal and international vessels providing cargo services, and an important ship servicing and repair industry exists around Rotterdam .

The manufacturing sector makes up 2.0% of GDP. Manufacturing is dominated by industries such as engineering, vehicle manufacture, electrical and electronic products, chemicals, aerospace and petrochemicals, all of international importance. Investment initiatives have attracted a wide variety of foreign firms in recent years, including Polaroid, Esso, Dow Chemical, Fuji, Nissan, Engelhardt, Amsco, Thorn EMI and Rank Xerox .

Dutch businesses depend greatly on international trade and as the performance of the external sector improves, business confidence strengthens. Changes in labor laws in 2007 increased flexibility and allowed more overtime hours. The government plans to tax wealthier pensioners who retire early as part of its effort to encourage people to work longer .This creates a wealthier, more developed country, therefore more attractive to foreign investment.

Poland (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member is of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

Poland is enjoying a pattern of balanced growth, rising employment, and a small current account deficit. Large transfers from the EU and greater integration with EU trading partners help to boost investment and create attractiveness for other foreign investors and seekers of market expansion.

Inward investment is changing the landscape of the manufacturing sector. Since 2000, Poland has become a major producer of high-end consumer electronics. The country already produces about 20% of Europe’s flat-screen monitors and the government estimates that by 2010 around 75% of Europe’s television sets will be Polish-made .

Poland’s location in the center of Europe gives it ready access to the rest of the continent. This creates great opportunity for transportation investment from foreign companies. Poland's long-term attractions to foreign investors continue to hold appeal. It is a very large and underdeveloped market with a solid export base and labor costs that only a quarter of those in West Europe.

As stated above, Poland's transportation system seeks foreign investment to assist in the development of its roads. The number of cars on the road more than doubled between 1991 and 2007 but the country has only 340 kilometers of expressway. With EU aid set to rise from 2% of GDP to 4%, the government has ambitious plans for improvements in transportation. Construction of more than 500 kilometers of expressways and roadways is already under way .

Poland has the largest coal reserves in the EU and investment is needed to development the industry

Portugal (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

The main agricultural products include citrus fruits, olives, wines and vegetables. Cork is grown for export, and the country has an important fishery industry. They benefit from the Common Agricultural Policy (CAP) with funds that are channeled mainly to meat, dairy and cereal production. The CAP combines a direct subsidy payment for crops and land which may be cultivated with price support mechanisms, including guaranteed minimum prices, import tariffs and quotas on certain goods from outside the EU.

Tourism is an especially important sector, accounting for 10% of employment. To achieve this goal the industry is planning to diversify into new regions and create new attractions. Tourism in Portugal is less expensive than in most of West Europe. Inexpensive labor and unrestricted access to the EU market attracts foreign investment.

The government has made privatization a priority. The government has been working with Spain towards integrating the two countries' electricity markets in order to create a regional market. It plans to sell a number of companies, generating €2.4 billion in revenues. The sales include TAP-Air Portugal and the country's leading oil and gas utility. To strengthen its banking system, the government has raised the coverage limit for deposit insurance limits, recapitalized various banks and guaranteed their borrowing .

Portugal's markets are more tightly regulated than in most other EU member states. Officials have launched a program to relax these regulations and to harmonize them with the regulations of trading partners. New financial initiatives have also been introduced. The tax system is being simplified and the base for corporate taxes is being broadened.

Romania (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

With proven reserves of 500 million barrels, Romania is largest oil producer in Central and Eastern Europe. Romania dominates South-eastern Europe's downstream petroleum industry. Several of its refineries were privatized in 2005 and 2006. Capacity far exceeds domestic demand for refined petroleum products, allowing the country to export a wide range of oil products and petrochemicals .

Romania is central and eastern Europe's largest producer of natural gas. The country has natural gas reserves of 22.2 trillion cubic feet and a sizeable domestic market. A number of pipeline projects are planned to increase natural gas transport capacity .

A flat tax of 16% on personal income and profits has been implemented in order to spur investment and draw much of the country's sizeable black economy which was estimated at 40-50% of GDP into the legal sphere. Employers' contribution to social security, healthcare and unemployment were cut in 2007 .

The manufacturing sector makes up 22.0% of GDP. Dacia, owned by Renault, and Hewlett-Packard have experienced unexpected success in foreign investment . Therefore creating opportunity for other companies to invest and expand market share.

Slovakia (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

It is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them.

Bratislava passed a new language law that promotes the use of the Slovakian language in public .

The government has introduced a number of reforms to improve labor market operation. The statutory age for retirement of men has been raised to 62 years while women will have the same by 2014. Pension discounts have been imposed for early retirement. Changes in the labor code have simplified employment procedures. As a result, employment rates of older workers has increased therefore contributing to the wealth and development of the country .

The main attraction for investors is the combination of low wage rates and guaranteed access to the EU. Slovakian wages are just a fifth of those in Western Europe. Slovakia has been the recent inflow of foreign direct investment, much of it from carmakers such as Peugeot, Kia, and Volkswagen.

A reduction in the VAT has been introduced along with higher income taxes for high earners. The minimum wage was raised by 10% in late 2006 and further increases are expected in the medium term. Reforms of the labor market are planned in 2010 with the intention of improving labor flexibility .

It is estimated that about 25% of the natural gas consumed in West Europe transits through Slovakia, which represents about 70% of the Russian natural gas exported to Western Europe. Slovakia's natural gas market is being liberalized in stages.

Tourism accounts for 12.3% of total employment. The industry is expected to see growth of around 2.7% in 2009 with a better performance in subsequent years .

The country's agricultural sector accounts for 3.4% of GDP. Major crops are grains, oilseeds, potatoes, sugar beets, fruits and vegetables . This sector seeks foreign investment for further development.

Slovenia (top)

Spain (top)

Sweden (top)

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

Sweden is a leader in mobile phone usage and development of the mobile internet. Biotechnology has become an important emerging industry that seeks foreign investment. Also, Sweden is one of seven EU countries to have completely opened its electricity market to competition in compliance with EU rules.

The country's automotive trio: Volvo, Saab and Scania, have reorganized, consolidated some operations and sold off others in order to better compete in international markets. In 2009, the government provided aid worth US$3.5 billion in loans, loan guarantees and funding for research, however further foreign in sought out.

A opportunity for foreign markets targeting the young demographic for employment or investment purposes has been created recently. Sweden's working-age population will begin to decline by the end of this decade, reducing the potential rate of growth to around 2% per year. Youth unemployment is one of the highest in Western Europe and is rising as the overall number of jobless people grows .

An ambitious reform of the labor market began in 2007. Labor income taxes are to be cut substantially, which is approximately 1.3% of GDP, in an effort to boost employment and household income .

United Kingdom (top)

The UK consists mainly of two distinct land masses. One part includes England, Scotland and the Principality of Wales, and the other consists of Northern Ireland.

The UK is a member of NATO (The North Atlantic Treaty Organization), which provides a forum in which the USA, Canada, and European countries can consult together on securities issues of common concern and take joint action in addressing them .

The country is a member of the European (EU), which has developed a single market through a standardized system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital.

The UK is by far the largest petroleum producer and exporter in the EU. The UK is by far the largest petroleum producer and exporter in the EU. It also is the largest producer and an important exporter of natural gas in the EU. The government hopes to have 5% of all transport running on biofuels by 2010 .

The UK has ambitious plans to develop its nuclear industry. The government is committed to building several nuclear plants and has attracted interest from most of Europe's leading energy companies but continuously seeks more investment.

The UK's public capital is low compared with major economies , especially compared to Europe. Some parts of the country’s infrastructure could be rebuilt to improve productivity therefore seeking foreign investment.

The UK has some onshore oil production and is one of the world's largest oil consumers. The central North Sea contains nearly half of the UK's remaining oil reserves. There is still some unexplored territory west of the Shetlands and foreign investment could help develop this area .