Eurozone crisis unlikely to affect Phl investments

CEBU, Philippines- Europe’s current political and economic crisis would not significantly affect the entry of European investments into the Philippines, an official said.

However, potential investments in the country from Europe are mostly inquiries yet considering the economic problems that the eurozone economy is facing, said Sabino Dapat, Cebu Business Council chair of the European Chamber of Commerce of the Philippines.

Progressively, economic recovery has been expected in Europe after bad news on bailouts, recession, debt crises and deflation affecting its economic health, foreign news reports said.

In an interview, Dapat said he believes there are countries in Europe like Germany that are developing despite the crisis which has affected the eurozone’s economic growth.

He said the ECCP now wants to bring European small and medium enterprises into the country for possible partnerships with local companies here.

He explained some of these SMEs from some member states of the eurozone had already engaged in talks in Manila for possible tie-ups with Philippine firms.

These partnerships could entail the supply of materials or resources to Europe and technology transfer, he said.

Although he hinted there are no “definite” plans yet made out from these talks.

But he expressed hope that same engagements with small European companies would also be done in Cebu soon.

“We’re considering that and hopefully that will be materialized this year,” the council chair noted, adding that he had supposedly targeted to have such talks in June last year.

In addition, the Philippine government secured $2.3 billion worth of committed and prospective investments from Europe during President Aquino’s Europe working visit in September last year, a report said.

It can be remembered also that the Philippines was granted the Generalized System of Preferences Plus status to the European Union, which brings down tariffs of Philippine products to the EU to zero.

The Philippines is the only Southeast Asian country that has been granted the EU GSP+ status. (FREEMAN)