Wirtschaftsstammtisch: The European Union’s Crucial Months by Frank Banaria
The German Club-Manila held an economic forum last March 21st to discuss the European Union’s crucial months between Brexit, the parliamentary elections and unilateral tendencies with the EU Ambassador to the Philippines, Franz Jessen.
The European Chamber is not too concerned about how Brexit can affect the Philippines. However, they face a lot of challenges with our current administration — President Duterte sees them as a colonizing power, and unintentionally or intentionally creates unnecessary roadblocks that hinders certain projects and FDIs from coming into the country.
Our president wants the EU to “apologize for their colonial influence” on the Philippines. He has a strong point of view when it comes to EU, which he thinks is “really out to get him”.
Currently, we are in what experts call a “demographic sweet spot”, with a 6.4% growth which is good for the labor force — unlike Germany, which has had a decrease in growth for the past 3 years. Germany is one of, if not the biggest, trading partner in the EU. The UK is only 8%, which is why Brexit will not have too much of an impact on the Philippines in terms of trading. Exports to the Philippines is doing very well, with an 80% increase from the previous year. However, Philippine products have reached a stagnant point when trading with the EU as compared to countries like Japan and China.
In terms of the war on drugs, EU has no comment, which is the opposite of what our president has been preaching. It probably isn’t him but our media’s attempts to make a fuss out of it. They don’t speak out because when they speak to the government, they are inclined to endorse their actions.
Investment-wise, EU was the biggest FDI in the Philippines. Now, they are down by 30% compared to last year. This is due to the uncertainty of tax reforms and Chinese relations. Also, the EU sees the Chinese as a strong competitor. German companies in the Philippines are strong in the manufacturing sector, a business the Chinese will never provide to us. And lastly, the cultures between the Chinese and the Filipinos are completely different as compared with the EU, such as religion.
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About the author:
Frank is an AB Mass Communications graduate of the University of Perpetual Help in Las Pinas. During his college years, he was active in sports and socioeconomic activities that helped sharpen his wit and shape his business acumen. Although his love for film making did not waver, logic and practicality made him set his sights on other opportunities that could provide better career growth and, at the same time, put his social and business skills to good use. Immediately after college, Frank entered the Business Process Outsourcing industry. Later on, this journey led him to the HR industry, where he has been for four years now.
