While foreign-controlled enterprises play a substantial role in the European Union's economy, Greece and Cyprus exhibit relatively low levels of involvement compared to the bloc's average, according to data from Eurostat. Though foreign influence on the EU's business sector reached 22.5% in terms of value added in 2021, Greece and Cyprus saw this contribution hover around 15.6% and 7.1%, respectively.
Looking at the overall share of foreign-controlled enterprises within the EU market, the difference remains noticeable. The EU average of 1.1% climbs to 29.2% in Luxembourg, 10.3% in Estonia, and 6.8% in Poland, while Greece and Cyprus stand at 7.5% and 7.8%, respectively. This indicates a less prominent presence of foreign businesses in the Greek and Cypriot economies compared to other European nations.
However, this doesn't diminish the overall importance of foreign investment in the EU. More than half of foreign-controlled enterprises within the bloc originate from other member states, highlighting the interconnectedness of the European market. Additionally, when examining shares of employees and self-employed individuals, the impact of foreign-controlled businesses becomes clearer. While the EU average reaches 15.0%, Luxembourg, Poland, and Ireland climb beyond 28%, while Greece and Cyprus remain below 10%.
These statistics paint a nuanced picture of foreign involvement in the European business landscape. While Greece and Cyprus might seem less integrated compared to some member states, they still contribute to and benefit from the overall interconnectedness of the EU's market. As the European economy continues to evolve, it will be interesting to observe how foreign investment will influence the business sectors of Greece and Cyprus, potentially bringing new opportunities and challenges.
