European common market

Since the late 1970s the general position of European information-technology industries has worsened in the world market. Most European companies are financially weak compared with their Japanese and American competitors; their information-technology products are not yet a major source of profits. The result is a negative balance of trade for Europe in this sector. In addition, studies show a negative balance of patents ¿ evidence that European industry is losing the race to create a strong technology base for itself. The European Strategic Programme on Research in Information Technology (Esprit) was formed by the 25-year-old Commission of the European Communities (the European Common Market countries) to reverse the decline in competitiveness.