According to Eurostat for 2024, foreign corporate control in Central and Eastern Europe (CEE) is concentrated mainly in Germany and the United States, as shown by the analysis of economist Oleksandr Kostyuk.
The highest share of value added created by enterprises under foreign control is recorded in Slovakia — 49,8%. Next are Hungary 41,5%, Romania 40,9%, the Czech Republic 39,1%, Poland 30,8% and Bulgaria 31,3%.
The role of foreign companies in EU employment and value added
Overall, in the European Union (EU) enterprises under foreign control account for around 1,1% of all enterprises. At the same time they provide 15,5% of employment and 24,2% of the business sector’s value added.
In Slovakia companies under foreign control employ 27,6% of those working in the business sector, while creating 49,8% of its value added. In the Czech Republic these shares are 27,2% of employment and 39,1% of value added.
Germany remains the main external centre of corporate control
Germany predominantly controls enterprises in the region: in the Czech Republic German companies account for 8,1% of business‑sector employment, in Hungary — 7,1%, in Slovakia — 6,7%, in Romania — 5,2%, in Poland — 4%.
Germany also leads as an external controller in Slovenia, Croatia, Bulgaria and Lithuania with employment shares of 3,3%, 3,4%, 2,9% and 2% respectively. Manufacturing facilities can be located in one country while strategic control is exercised from another.
The US compete with Germany for influence over the region’s business
American companies also have a noticeable presence: in the Czech Republic enterprises under American control account for 3,6% of business‑sector employment, in Poland — 3%, in Slovakia and Hungary 2,8% each, in Bulgaria — 2,3%.
In Romania the share of employment in enterprises under American control is 2,6%, while France is the second‑largest external controller with 3,1%.
Different centres of economic influence operate in the Baltics
In Estonia the largest external controller is Finland with an employment share of 4,7%, followed by Sweden — 3,9%. In Latvia the leading country is Lithuania with 3,2%, second is Sweden with 3,1%.
In Lithuania Germany leads with a share of 2%, followed by Sweden with 1,8%. Enterprises under foreign control create 36,8% of value added in Estonia, 37,5% in Latvia and 31,6% in Lithuania.
Lessons for Ukraine, according to the expert
The experience of neighbouring countries shows that foreign investment can support the development of manufacturing, job creation and technological modernisation. To rebuild its economy and industry, Ukraine needs substantial capital inflows.
According to Oleksandr Kostyuk, attracting investment alone does not guarantee the emergence of strong national companies and management centres. Ukraine, he says, needs to create conditions for the development of its own businesses capable of controlling production, technology and intellectual property.
