Friday, July 6, 2012

Comments from the European CEO Panel



Thierry Breton, Atos -
I am convinced Europe will be OK because Europe only is motivated when there are difficulties and this is a very difficult period for us; there is no way to escape. But the EU and the Commission will have to reform as well, especially regarding regulations; not only in telecomms but within European companies. For example, there is no way to create a European champion.

We don't train enough engineers in Europe, and that's a big concern I have. We need to encourage young people to return to scientific studies.

We need more fiscal stability especially in France. In the last five years there have been new policies introduced every week. You have new taxes, new regulations too often. We cannot move ahead without some more fiscal stability - it is impossible.

Jon Fredrik Baksaas, Telenor -
The world is going digital. Telenor and SAP are drivers of the solutions to take manufacturing output into the service space. This will continue to happen, but at the same time Europe is a latecomer to bringing new broadband services (4G) to Europe - they have lost momentum and mobility to the US over the past few years. The US has taken strong decisions to make possible rollout of 4G. This is a regulation issue.

Jim Hagemann Snabe, SAP -
The biggest challenge is youth unemployment.
The (social) security rules in place in some countries in Europe slow down progress. What if we were permitted as countries to retrain people? The world is moving into a new area and we may not have the right skills. Europe needs a commitment to re-educate of people. Europe doesn't get more productive or competitive because we lay off people and then can't find the people we need for the future.

On labor costs: It costs SAP five times or to hire a German technology worker than one in India. Does that mean if we hire five Indians instead of one German and we get more productivity? No. You don't go into India for cheap labour; you go there for the talent. There has to be a global mix.

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