In 2023, more than half of the foreign subsidiaries controlled by companies from European Union countries are located outside of European territory, with a significant 50.8%. This information, extracted from Eurostat statistics, highlights a considerable expansion of EU companies in global markets.
The analysis highlights that countries such as Croatia, Spain, Portugal, and Sweden have the highest proportion of active subsidiaries outside the EU, reaching figures of 64.7%, 60.1%, and 57.9%, respectively. In contrast, Slovakia, Greece, and Latvia have the lowest percentages, with only 6.6%, 9.2%, and 19.4% of their subsidiaries located abroad.
In terms of employment, the report indicates that 61.6% of employees employed by these subsidiaries work outside the EU. Ireland stands out in this aspect, with an impressive 82.3% of its workforce working abroad, followed by Spain, with 77.0%, and Bulgaria, with 66.7%. Slovakia, on the other hand, reported only 6.2% of its employment overseas.
In addition, the report examined employee benefit expenses of subsidiaries established outside the EU, which reach 59.1%. Ireland also leads in this segment, with 76.1% of its benefit expenses aimed at these subsidiaries. Slovakia once again shows the lowest proportion, with only 5.7%.
Regarding financial performance, EU companies generated 61.2% of their net income outside the community. Ireland stood out again with 77.4%, followed by the Netherlands (70.7%) and Spain (69.5%). The lowest percentages were reported by Slovakia, Latvia, and Hungary, with figures ranging between 6.2% and 13.9%.
Regarding gross investment in non-current tangible assets, only a third (32.8%) is allocated to subsidiaries located outside the EU. The most significant investments come from Ireland, Denmark, and Portugal, with figures reaching up to 80.3%, 65.9%, and 60.5%, respectively, while Romania, Hungary, and Slovakia show significantly lower investment levels, between 3.6% and 10.6%.
These data highlight both the growing trend of European companies to diversify beyond EU borders and the significant differences among various countries in terms of control, employment, and investment in their foreign subsidiaries. The report suggests a strong orientation towards globalization that could have profound implications for the European economy and the international business environment in the coming years.
Source: MiMub in Spanish