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.

European CEO's speak out on European competitiveness

Thierry Breton, Chairman and CEO, Atos
Jim Hagemann Snabe - Co-CEO, SAP
Jon Fredrik Baksaas - President and CEO, Telenor Group

Moderator:
Bruno Lanvin – Executive Director of INSEAD eLab

Thierry Breton: The Next Decade will be the Most Difficult....

"The next decade will be the most difficult for Europe," said Thierry Breton... currently global head of consulting company Atos, former French Finance Minister and former head of France Telecom/Orange.

He is seriously concerned about debt levels because it puts France at great risk to market gyrations. France has doubled its public debt in the past decade and is still increasing borrowing. Real financial stability will come from reducing pubic debt and therefore market exposure and by forming close alliance with Germany on economic matters.

He agrees with Jean-Francois Copé's support of the decision taken last week by European leaders to support European banks and further consolidate the EU's financial systems.

Breton believes that one way or another "we will reform our continent." And he reminded the audience that the three leading consulting companies in the world are European: Accenture, Cap Gemini and Atos.


Jim Hagemann Snabe - CO-CEO SAP

"With the demographic challenges we face today, it's insane that youth unemployment is so high," said Jim Hagemann Snabe, CEO of German business software maker SAP. "Businessmen cannot wait for politicians and government to fix the problem..so what are we doing? At SAP we are doing two things...

1. We looked at our company and said we need to drive an agenda of innovation because it enables opportunities for young people to get jobs and it enables the development of innovation. We are driving our own capabilities to innovate, to do that speedily and to develop new technologies. Thus far we have had 9 quarters of double-digit growth and this shows that if you focus on innovation - you can also have growth.

2. We have a huge commitment to what we call "the power of small" because it is with the SME's that innovation comes. In Europe every second job created is within a SME and they don't need headcount growth to grow revenues.

Innovation therefore can be fundamental to the growth of an ecosystem of small and medium-sized businesses."


Jon Fredrik Baksaas - President & CEO, Telenor Group

Scandinavia is just beginning to grow and develop together, but it also has shifting governments, said the President and CEO of Swedish telecomms operator Telenor Jon Fredrik Baksaas. "But we are able to come together on how to spend the richness of North Sea oil profits."   He pointed out that it is only since after the Second World War that Scandinavian countries have been able to develop both alone and in parallel while continental Europe has had this ability for centuries. He cited the region's unified response to terrorist shootings in Norway a year ago as an example of collaboration within Scandinavia.

"The Swedish economy is about manufacturing, worldwide looking with strong brands, while the Norwegian economy is more about natural resources. The Finnish economy broke down essentially after the collapse of the Soviet system in 1989-90 but regrouped, joined the Euro and has rebuilt itself. These are all open economies and are all dependent on international trade agreements to create value and to participate in global growth.

He adds: "and they don't pose a military threat to anyone..."