Country Report / Austria Austria takes on challenges of EU Presidency in 2006 On the occasion of Austria assuming the Presidency of the European Union (EU) for the first half of 2006, the Korea IT Times interviewed H.E. Wilhelm Donko, Ambassador of the Republic of Austria in Seoul... Ed. Q: Please describe the significance of Austria assuming the EU Presidency and Austria's planned activities in this regard A: In 2006, Austria celebrates the 250th anniversary of Mozart's birthday as a worldwide event. However, this year is not only our "Mozart Year," but also a very important year politically. Austria has taken over the Presidency of the European Union for the first half of this year, coordinating the politics of the 25 Member States. The EU Presidency, i.e. the Presidency of the Council of the European Union, is held by the Member States on the principle of rotation for a period of six months. Austria is holding the Presidency of the EU for the second time since Austria's accession to the EU on 1 January 1995. It first held the Presidency in 1998. Austria will be followed by Finland on 1 July 2006, then Germany and Portugal. Holding the Presidency of the European Union also presents Austria's diplomatic service with a considerable organizational challenge. The Presidency represents the European Union internationally in close cooperation with the European Commission. It issues declarations and statements, coordinated in advance with the other Member States and coordinates EU-positions in international organizations such as the United Nations or OSCE etc. The Presidency also speaks on behalf of the European Union at major international conferences To hold the Presidency means practically that Austria has to chair all EU meetings during these six months, i. e. the meetings of the EU Heads of State or Government, all Council meetings at ministerial level, for example the regular meetings of EU ministers responsible for IT policy. But also the regular meetings of the EU ambassadors in Seoul, of the EU Commercial Counselors, EU Political Counselors, Cultural Counselors, the consular meetings etc. We also coordinate the preparatory work for these meetings. In terms of substance, Austria has put employment, work and growth on top of its agenda for the Presidency. These questions are very important for the people in Europe. An "Operational Program of the Council for 2006" was drawn up by the two countries holding the EU Presidencies of the year 2006, Austria and Finland, on the basis of the Multi-annual Program which covers the years 2004-2006. It sets out the main objectives for this year's work of the Council. The Program can be found on the Web site of the Presidency www.eu2006.at Q: For Austria, please elaborate on what goals you have in mind to carry out the role of the EU Presidency successfully A: The two Presidencies of 2006, Austria and Finland, have decided to work closely together in order to ensure that the work of the Council of the EU contributes to economic and social welfare, protection of the environment, freedom and security of European citizens as well as strengthening the role of the European Union within the world. This also includes strengthening IT cooperation with our partners all over the world. But I think I should say a few words on the European Union in general in order to explain your readers the background of the EU. This is helpful to understand the meaning of a Presidency. The EU is an intergovernmental and supranational Union of 25 member countries. The total population is 460 million people. The EU has today a common single market, consisting of a customs union, a single currency (the Euro; adopted by 12 of the 25 members), a common trade policy, a common agricultural policy and a Common Foreign and Security Policy (CFSP) etc. Goods can move freely and without borders between the 25 member states. Passport controls for people were abolished at many of the internal borders between the member countries ("Schengen - system", currently implemented by 15 countries in Europe). To sum it up: there is a single space of mobility for Europeans to travel, to work and to invest! I think it is important to have these facts in mind when we speak about the Presidency of such a big, but also very diverse and often quite complicated structure as the European Union. Allow me to speak also about Austria's place in the European Union and to go a little bit back in history. In 1994 the Austrians decided to join the EU in a referendum with a majority of 67 percent. I think it was the right decision and it was taken at the right point in time. Since our accession to the EU in 1995 the European Union has experienced a remarkable thrust of growth and development. In these years also the number of Member States has more than doubled from then 12 to today 25. Austria has contributed to shaping these important years, we were stakeholders in this development, and we shared the responsibility for it. Today we have the privilege of contributing to the development of the European project as Presidency. And we have the chance of living in a re-united Europe in peace; the EU is the most important guarantor for this privilege. Europe is today a haven of prosperity and stability. But besides that, Austria is also an attractive business location in Europe. Since our accession to the EU: . Exports of Austrian companies have more than doubled. . Foreign direct investments in Austria have more then tripled. . Spending on research has almost doubled. . New jobs have been created; purchasing power and wealth have increased. Austria is today among the richest countries in the European Union and perfect place to invest. For consumers the choice of goods on offer is clearly wider and better, not only for imported products but for domestic ones too. A substantial part of this success is the high ranking IT development and the high level of infrastructure in this field provided by the government and by private enterprises. As a small but very visible example of our advanced level in IT business I would like to mention the fact that the chairman of the IT-Committee of the EUCCK in Seoul is an Austrian, Mr. Wolfgang Slawinski. We consider Korea as one of the most advanced countries in IT-technology. Austria therefore thinks it is highly important and desirable to pool our resources for a mutually beneficial cooperation. I would like to mention one initiative in that regard: the 1st Korean Austrian Automation Day "Automation and Mechatronics" which will be held May 11 - 13 in Changwon Convention Center. But for detailed question in the field of IT cooperation I would like to pass on the word to The Commercial Counsellor of the Austrian Embassy, Mr. Werner Somweber. ---- Part B: Interview with Werner Somweber, Commercial Counsellor of the Austrian Embassy in Seoul Q: What's your opinion about Korea-made DMB or WiBro products as well as this technology's adaptation potential in Austria A: South Korea has definitely made major strides in information and communication technology over the past few decades and is progressing as a global trendsetter with one of the world's highest wired as well as wireless penetration rates. The introduction of Korean WiBro services and DMB have been closely watched in Austria as well as in the rest of Europe. Since there are two standards existing - on one side DMB and on the other side DVB - the future will show which of the standards will be accepted by the users and by the industry. We are looking at the trial phase of DMB in Germany for the Football World Championship where both standards shall be used. For Austria it is, at present, difficult to say which standard to follow. The same is valid for WiBro. WiBro as a competitive standard to WCDMA or UMTS, as it is called in Europe, might be hard to introduce unless it proves costefficient and easy to be implemented. For Austrian companies it would be beneficial establishing cooperation with reliable partners in Korea to participate in Koreas very advanced technology. In principle, this would be valid for all of Europe: to establish a closer working relationship with Korea within the IT & Telecom area. Q: How high is the IT development level in Austria at the moment A: Austria has a very high IT development level and Austrians like to surf the Internet via high-speed. Austrian service providers are very advanced in their way of thinking and, therefore, it would be interesting to match Austrian IT and telecom companies with Korean ITcounterparts. Austria's high ranking in IT development is due to the infrastructure provided by the government and private enterprises as well as the scientific research funded by the government and the technical know-how of universities. The governments increased efforts to stimulate demand and usage of IT-services, especially. broadband, have resulted in a stimulus of IT usage, increased demand and a faster development of broadband networks and high-speed lines. All these factors were a prerequisite for Austria to gain a leading position within the international IT-community. Austria's small and medium-sized enterprises (SMEs) are also benefiting from the intensive research carried out by SMEs in the telecommunication industry. Membership of the European Union has increased competition dramatically, torn down monopolies and offered domestic producers wider export opportunities. Quite a few Austrian IT-companies have found niche markets to become internationally competitive. Some ITentrepreneurs have even teamed up with large international companies to use their global distribution channels. This was a very important signal to the Austrian ITindustry in general and an incentive to develop new products for international ITdemand. Since Austrian software companies are mainly SMEs, they usually depend on customers who demand tailor-made application. Hence, most Austrian businesses are customer-oriented and can compete on an international basis. There are also a considerable number of IT-associations that help promote the industry. They have influence in the political arena and represent the SMEs very effectively. These associations provide a network for cooperation that increases awareness of the industry and stimulates development. In addition, software piracy in Austria is very low compared to other countries. Thus, developers are able to get a fair return on their investment and will hardly suffer any losses from illegal practices. Q: What do you think of the potential for IT collaboration between Korea and Austria A: The Austrian population is educated and affluent. It can be expected that once usage is stimulated, demand will increase and create more opportunities and competition for IT-players. The demand for cellular phones and PCs as well as notebook computers has been high, which is an indicator of increased acceptance of new IT-products by Austrian consumers. A fairly large part of Korean exports to Austria consists of cellular phones as well as hardware and software equipment. Austria considers Korea as one of the most advanced countries in IT-technology and it would be highly desirable to pool our resources for a mutually beneficial cooperation. One of the first initiatives in that regard will be the first-ever Korean Austrian Automation Day "Automation and Mechatronics" on May 11-13, 2006 in Changwon Convention Center, Korea. More information on this high-profile event as well as participants from Austria (and Korea) can be obtained through the homepage of the Commercial Counsellor's Office at the Austrian Embassy under http://www.austriantrade.org/kr Q: How highly do you rate Korea's IT level in general A: The IT level in Korea is one of the highest in the world. Korea has already become the test bed for applications of new technologies developed in the ICT industry sector, which explains why more R&D investments are taking place in newly developed Korean ICT clusters for multiple technology research and engineering development centers. Korea is a magnet for R&D centres of multinational IT-corporations, attracted by Koreas excellent human resources and advanced IT-base. Close to 30 million Koreans use the Internet - the overwhelming majority via broadband access, putting the country far ahead of its rivals in world rankings. South Korea has become the most penetrated broadband market in the world and is also a world leader in the commercial application of broadband Internet technologies. South Korea's exceptional broadband success is due to several factors, some of which may be specific to the country and others that can be replicated by policy-makers in other economies - in that regard, also Austria has studied the Korean success story in every detail. Q: Please tell our readers a bit more about Austria's IT policy A: The continuous efforts by the Austrian government to improve the information technology infrastructure and to increase IT-usage has been a major driver of IT development. The ITcooperation between the public and private sector are important steps to keep Austria at the top level of developed nations and, thus, made Austria's small and medium sized IT-enterprises internationally competitive. Austria's enterprise structure creates sufficient healthy domestic rivalry between IT-ventures and Austria SMEs are at the forefront of conducting basic research and development in the IT-sector. Also, the academic institutions are using a very sophisticated IT-network and are well connected with European institutions as well as Eastern European countries. The sharing of resources in the EU and the initiatives by the EU Commission also comprise an important factor in Austria's IT development. The essential technologies for a variety of applications in the advanced telecommunication's sector are available in Austria. Most provinces are already focusing on the information highway infrastructure to make the location also more attractive for FDI. Since Austria's IT-workforce is skilled and disciplined many FDIs in the field of Information-Technology were attracted despite high labor costs. The educational level and productivity rank among the top 10 countries in the world. The number of programs containing higher education in computer sciences is ever increasing. Q: In which areas would Austria like to cooperate with Korea in terms of IT collaboration A: One of the promising areas of cooperation could be in the academic and R&D sectors, as some universities in Austria are looking for partners in Korea for common projects and research. On the other side a participation of Korea in the 6th Frame Program and 7th Frame Program of the European Union would support and enhance the cooperation between our countries. The European Union is providing financial support for the European partners and from the Korean side, as we understand, there exists financial support as well. This could lead into a mutually beneficial and promising partnership between Austria, with respect to the EU and Korea. Another direct way to increase the IT collaboration between our two countries would be a presentation of Korean SMEs to an Austrian SME auditorium to obtain a feeling of the Korean and Austrian ITmarket and to locate partners for joint development or marketing. To support this idea a contact could be made through the Austrian Commercial Counsellor's Office in Seoul ( http://www.austriantrade. org/korea ) or the European Chamber of Commerce in Korea and here, specifically, through the IT & Telecom Committee which has recently signed a cooperation MOU with the MIC and whose chairman is an Austrian, Mr. Wolfgang Slawinski.