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In 1993, production of glass containers in western Europe fell 2.5%, following a 0.5% drop in 1992. The recent decline follows a decade of consistent growth, which averages at 2.5% per year. Consumption also fell in 1993, although exports from European Union countries rose 2.6%. Details of recent developments within the industry are included, such as internationalisation, commitment to bottle banks, and waste management.

The slow performance of the German and Italian car markets impeded the prospects of a gathering recovery in the western European new vehicles market during the second half of 1994. However, the recovery will continue and sales are expected to reach 11. 98 million units in 1994, rising to 12.84 million in 1995. Tables giving forecasts of new registrations and sales of passenger cars, commercial vehicles and goods vehicles, plus new registrations and production between 1980 and 1996 in all west European markets are presented.

Figures from Pira International's 'European Packaging 1993/94' show that Western Europe's consumer packaging market totalled some $70 billion in 1992, with food and drink packaging accounting for 59% of the total. Packaging materials output in the region reached around $104 billion in 1992, with the market led by Germany, accounting for 26% of the value, followed by Italy, France and the UK, together accounting for around 51%. An analysis of Western Europe's 100 top packaging companies is presented.

Poor 1993 results for Europe's vehicle manufacturers have given way to a brighter outlook for 1994. A total industry loss of Ecu 3.40 billion in 1993 should turn into an industry surplus of Ecu 3.51 billion in 1994, reaching Ecu 6.60 billion in 1996. Fiat expects to return to profit in 1994, while Ford of Europe expects European sales to grow by 8% during the year. GM Europe reported an impressive 1993 profit and expects its Adam Opel unit to be back in profit during 1994, following considerable losses in 1993.

The Western European new car market during the first half of 1994 shows a general recovery in sales, with only Greece, Austria and Portugal showing a fall. The Scandinavian markets are showing strong growth, while the markets in Spain, the UK, Ireland, France and the Netherlands are expected to perform well for the remainder of the year. Tables giving data on vehicle production and registrations are presented for 17 European markets.

An overview of developments in the Western European automobile market is presented. An alphabetical list of manufacturers and their activities for the third quarter 1994 is included.

The diesel car market in Western Europe has emerged from the recession relatively intact, with sales reaching over 2 million units in 1992 and accounting for 17.1% of the market. PSA Peugeot Citroen leads the market with some 520,000 new diesel cars sold in 1993, followed by the Volkswagen Group, with some 365,000 units and Renault with about 320,000 units. The sector is dominated by medium-sized cars, with the best selling diesels in Europe being the Peugeot 306 and 405. The five biggest European markets for diesel cars are France, Germany, the UK, Spain and Italy.

The UK money market and the operations of the Bank of England have features which are linked to the history of the UK, and others which are common throughout the world. This issue is important when considering European monetary union, and the policies which are likely to be effective. Inefficient structures will not prosper within a monetary union, but there is no need for the financial infrastructure of each European country to be the same.

UNITED STATES First of a kind biomethanol plant slated for operation in 1995 The world's first biomethanol plant based on landfill gas may come into operation by the first quarter [...]

Lobbying is becoming increasingly important in the European Union (EU) as its responsibilities increase, and is likely to become more important following an emphasis in the Maastricht Treaty on consultation. The European Commission aims to introduce self-regulation among lobbyists, and is setting up a register of non-profit lobbies. Qualified majority voting in the EU Council of Ministers hinders the activities of lobbyists who can no longer influence one member in order to block legislative changes.

The European Union has set up an environmental audit scheme which will be applied from April 1995. The legislation aims to encourage companies to commit themselves to improving environmental performance and make statements on that performance, and to promote a consistent approach to eco-audits and environmental management. The system is voluntary, and participating companies need high levels of commitment so they need to be convinced that they will benefit from participating in the long term.

The European Union aims to tackle a number of foreign relations issues during the German presidency, especially relations with eastern Europe, and with Asia. There is also a drive to develop links with South Africa, despite French efforts to limit South Africa's access to European markets. There is concern that Japan will submit to US pressure and allow US but not European imports into its markets. Meanwhile, there are difficulties in ratifying the Uruguay round of trade agreements.

The European Court of Justice (ECJ) has taken a cautious approach in 1994, in contrast to earlier decisions, and is speeding of processing of cases to clear a backlog before personnel are changed in fall 1994. Rulings made by the ECJ include the anullment of a decision by the European Commission allowing Germany to derogate from a directive on harmonization on health grounds. The ECJ has also ruled that UK employment law is not in line with European Union directives on consultation with employee representatives over redundancies and relocation. Other decisions include a ruling on the treatment of pregnant employees, and imports of products with trademarks similar to those already used in the European Union.

The European Union (EU) aims to speed up the implementation of directives and simplify legislation, and is examining policy affecting a number of sectors. These include audiovisual policy where the EU aims for standardization indeveloping digital techniques for information networks and broadcasting. Biotechnology is to receive support, as is research and development in the automobile industry which will have to compete against Japan from 2000. Other sectors affected by legislative change include food and financial services.

PLM AB is based in Malmo, Sweden and is Europe's seventh largest maker of rigid consumer packaging. The company is a wholly-owned subsidiary of Industrivarden and had a 1993 turnover of $923 million. PLM's three core activities are beverage cans, glass containers and plastic containers. Some 38% of sales were accounted for by the beverage can division in 1993, glass packaging accounted for 41% of group sales and plastic, with plastics being the smallest division, having a 1993 turnover of $68 million. The company aims to become the second largest European beverage packaging firm behind Tetra-Laval.

The European corrugated board industry has weathered the recession, with shipments in 1993 estimated to be up around 0.7% from 1992. Traditionally, growth in demand for corrugated packaging has normally outperformed that of GDP but new factors, such as environmental legislation and the changing pattern of warehousing and distribution, mean that future volume growth is more unpredictable, although it should keep pace with GDP. In 1992, corrugated board accounted for a 20% value share of all packaging materials used in Western Europe. Corrugated board shipments in Western Europe during 1992 reached 14.34 million t.

The European packaging industry is recovering from the recession to encounter slower long-term growth in the 1990s and public misunderstandings about its environmental role. There has been some overcapacity in the industrial packaging sector, mostly in the plastics, paper and board segments. The European packaging industry is very fragmented, with the leading packaging maker, CarnaudMetalbox having only a 6% share of the total market. There has been significant growth in the use of plastics packaging, although environmental concerns threaten further prosperity.

The outlook for the Western European paper industry is unclear, with profitability down to the lowest level for years despite an increase in 1993 production to 65.9 million t. A recovery of prices is necessary if viable profit levels are to be achieved. Overall, the Western European paper industry has grown faster than its U.S. counterpart, with graphic papers performing well. Some 10% of paper output is exported outside Western Europe, primarily high value-added grades to Asia. Western Europe uses 50% of global pulp supplies, with output depressed by increasing imports and wastepaper usage. Some 41% of all fibre consumption is accounted for by recycled fibre.

Many Western European vehicle manufacturers reported a net loss in 1993 and are now entering a period of restructuring and rationalisation. A summary of developments in the West European car industry for the second quarter 1994 is presented.

New passenger car registrations in Western Europe totalled 11.45 million in 1993, down 15.2% from 13.45 million in 1992. From mid-1994, a slow recovery is expected in the region, led by markets in the UK, Spain, France and Scandinavia. The new car market is expected to reach 12 million in 1994, rising to 13.13 million in 1996. Summaries of the passenger car and commercial vehicle markets in 17 Western European countries are presented.

The market for pickups in Western Europe is running at some 75,000 vehicles per year and is forecast to remain relatively stable, reaching 77,500 by 1996. The sector is dominated by diesel-fuelled vehicles, thought to account for more than 80% of new registrations. Pickup production in Europe is small with most units imported from Japan. The market is led by Nissan and Toyota. Peugeot is the main European maker, with 1993 production estimated at 12,000 units.

Sales of off-road vehicles in Western Europe reached a record 268,957 units in 1993, up 2.6% from 1992. The UK and Germany are the biggest European markets for off-road vehicles, with UK sales reaching over 40, 000 units in 1993 and sales in Germany totalling almost 80,000. The market continues to be dominated by Japanese makers, although Land Rover has seen a substantial rise in sales. New registrations of off-road vehicles are forecast to reach 299,500 units in 1994, rising to 322,500 in 1195 and 330,000 in 1996.

A symposium organised by the British section of the European League for Economic Cooperation (ELEC) in Oct 1993 looked at the important trends which will make energy issues a more significant part of European Union strategy over the next few years. These trends include the impact of energy on the environment and the growing import-dependence of the European Union. There is likely to be a gradual move towards a single market in energy, and the issue of energy conservation will attract much interest. The European Union must initially ensure agreement on common rules, in order to prevent the market being distorted.

The main issues which will determine the European business climate over the next few years will be the extent of stability between individual currencies, the inegrity of the European Union's single market, Europe's economic performance and the geographic extent of the market. There is still some way to go before all the proposals relating to the creation of the single market come into effect, and eforts to abolish national differences in company law and accounting have so far had little success. There are no common laws in areas such as intellectual property, but the Commission is now working harder to encourage national governments to speed up the implementation of single market directives.

European Community courts have taken a new approach over recent months, and judgements have been characterised by an atmosphere of judicial abstentionism. Courts have taken a more relaxed view on issues including national restrictions on methods by which goods may be marketed, they have been more realistic about gender discrimination in the context of 'bridging' pensions and have prevented shareholders in a company involved in a merger from challenging a Commission decision allowing the merger. Other cases recently considered deal with issues including the question of confusion between trademarks and national measures intended to regulate prices in the insurance and transport sectors.

The total number of new passenger car registrations in Western Europe during 1993 is forecast to reach 11.31 million, against 13. 50 million in 1992. The total is expected to rise to 12.18 million in 1994 and 13.20 million in 1995. The total number of new commercial vehicle registrations in Western Europe in 1993 is forecast to reach 1.30 million, against 1.66 million in 1992. The total is expected to rise to 1.45 million in 1994 and 1.67 million in 1995. Further statistics on automotive trends in Western Europe's 17 markets are presented in table form.

Across the Western European new car markets, Volkswagen's Golf is the overall market leader. The industry is generally divided into four segments, including the micro/small segment, the lower medium segment, the upper medium segment and the luxury segment. The lower medium segment, which includes Ford's Orion and Volkswagen's Golf, is the only one to have seen sales grow in 1992, with both the micro/small and upper medium segments declining. A detailed review of the Western European market, including statistics for individual countries, is presented.

Textile floorcoverings consume 600,000 tonnes/y, of Western Europe's 5 million tonnes/y consumption of face-fibre. Although the sector does not face import competition, industry problems include increasing pressure for recycling of textile floorcoverings; growing consumer views that carpets are unhealthy; and the need to review carpet marketing. The problems facing the industry were discussed at the 1993 International Man-Made Fibres Congress held in Dornbirn, Austria.

The full benefits of the European single market will only be felt if Europe manages to achieve exchange rate stability, according to the Governor of the Bank of England. Exchange rate stability is also essential if the single market is to be sustained, especially against a background of large-scale unemployment. However, this can only be achieved if domestic policies within Members States are aimed at price stability. Europe must now concentrate on creating a situation which allows this to be achieved, whatever exchange rate structure is in force.

One of the roles of the European Commission is to coordinate all the Structural Funds, which are designed to give support in addition to public expenditure by member states. Most of the funds are allocated to operational programmes set up by the members states concerned, and their aims include development and structural adjustment of underdeveloped regions, fighting unemployment, promoting development in rural areas and helping young people. Three of the funds have been established for some time, while two others have been set up more recently. As the size of the funds is increased, there will be more controversy about their use, and closer monitoring is therefore planned.

Education for urban planners in Europe needs strengthening in various aspects if the voice of planners is to be heard. Planning should, for example, integrate different strands of planning theory, and look beyond individual nations to Europe as a whole. Planners need to be politically aware, for example in lobbying for support for projects, they should be normative in their perspective, seek to innovate, and use an entrepreneurial approach, a stance which involves the ability to negotiate.

The signing of the Maastricht Treaty in 1991 committed EC members to uniting their currencies by the year 2000. This would have implications for the independent status of member countries central banks. When monetary union takes place a European Central Bank will be created, and members will have to agree with its edicts. The central bank will be committed to low inflation, but there are fears its policies may lead to member countries relying on it to solve their fiscal problems.

Many western European countries have adopted large-scale privatization programs. The financial benefits associated with privatization have played a key role in influencing governments to sell off state assets. The UK has been the undisputed leader in Europe's privatization drive, raising some 29 billion pounds sterling from the sale of its interests in former government-controlled enterprises since 1979. Sweden, Germany and Spain have also raised several billion dollars each in their respective privatization programs. The trend towards less government intervention in the economy has become unmistakable with privatization programs being expanded in virtually all western European countries.

Defense industries in many countries are being affected by rapid changes in the marketplace. Corporations are decreasing their emphasis on manufacturing military equipment, while increasing the development of civilian applications. The Defence Manufacturers Assn in the UK is encouraging manufacturers to diversify. US aerospace firms are also attempting to diversify, but manufacturing civilian products can be expensive. Defense contractors in Western Europe will need to collaborate to survive in the marketplace.

PLASTICS HAVE THE MARKET COVERED ALTHOUGH flexible packaging comprises three main substrates, plastics films are by far the most important, outweighing paper and thin gauge aluminium foil combined in terms [...]

Oil Market Update 12.3.90 -- 23.3.90 OPEC'S mid March market monitoring committee meeting failed to rattle prices; instead it concluded with the Organisation choosing to stick with its joint output [...]