10th Australian Business Mission to Europe

Zurich, Bern, Brussels, Helsinki 26 June - 1 July 2016

Mission Report Supported by EABC Major Partner: (Executive Summary)

Introduction

The EABC Australian Business Mission to Europe is undertaken each year as an initiative to strengthen bilateral relationships with European leaders, institutions, officials, peak business groups and policy organisations.

The Missions travel to Brussels as the political and administrative capital of the European Union, and to other political and commercial capitals in Europe.

Since 2006, EABC delegations have travelled to Berlin, Bratislava, Budapest, Copenhagen, Frankfurt, Geneva, Hamburg, Istanbul, London, Madrid, Milan, Munich, Paris, Rotterdam, Stockholm, Strasbourg, The Hague, Toulouse, Venice, Vienna and Warsaw.

The visits provide opportunities for senior Australian business representatives to engage in dialogue on issues including policy responses to the global financial crisis, economic and fiscal policy, banking and financial services, foreign and security policy, trade, competition, energy and climate change policy, infrastructure, research and innovation.

The Missions also provide a valuable opportunity for Australian business leaders to work with Australian Government representatives in Europe - principally with Australian Embassies and Austrade offices - to profile ’s economic credentials and capabilities and promote opportunities for European investment in Australia.

Mission Leader & Endorsements

The Council was delighted to have the leadership and participation of EABC Chairman and former Premier of , the Hon Nick Greiner AC, for the 2016 Mission to Zurich, Bern, Brussels and Helsinki. The Prime Minister of Australia, the Hon Malcolm Turnbull MP, also endorsed the mission as an important initiative to foster greater economic relations between Australia and Europe.

The EABC Business Mission was also greatly supported by Austrade, the Australian Department of Foreign Affairs and Trade, and Missions to the European Union, Belgium, , the World Trade Organisation and Sweden. The Delegation of the European Union to Australia and New Zealand and Embassies and Trade Commissions of Belgium,

THE HON MALCOLM TURNBULL MP Prime Minister of Australia

“I appreciate the EABC's commitment to forging stronger business and institutional links between Australia and the EU, including through your annual business missions.

I particularly wish to thank the EABC for its work in support of an Australia-EU FTA. I was pleased to announce with European Commission President Juncker and European Council President Tusk in November last year that Australia and the EU will begin work towards the launch of negotiations for a FTA.

I welcome the EABC's support for the Government's innovation agenda. I am keen to share ideas with other countries, including those in the EU, on how best to promote innovation, science and research, and acknowledge the EABC's contribution to these efforts.”

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 2 Objectives

The objectives of the Missions are to examine opportunities to expand trade and investment relations between Australia and Europe (as Australia’s largest economic partner overall), to investigate current political and economic developments in Europe, and the influence of EU policies and institutions in global affairs.

During these Missions delegates have met with the European Commission President, Vice-Presidents and Commissioners, Vice- Presidents of the and chairs of parliamentary committees, the Deputy President of the European Central Bank, Heads of State and Heads of Government, Ministers, central bankers and leaders of peak employer and industry groups across Europe.

Insights are gained into the development of the European Union itself, including the major institutions of the European Council, the European Commission, the European Parliament and the European Central Bank, and the relationships between these institutions and the EU’s twenty-eight Member States.

Discussions focus on Europe’s relationship with its major political and economic partners including China, Russia, and the United States; as well as European views on the wider Asia-Pacific region, and co- operation with international institutions such as the G20, WTO, NATO, the UN and other international and regional bodies.

The Missions serve to profile the importance of Europe to Australia’s economy, as well as Australia’s strategic role and increasing integration in the Asia-Pacific region. The Missions are also valuable in building relationships and ongoing dialogue and co-operation with peak European business and policy groups.

Mission Programme

The Mission delegation included twenty-four Australian business representatives, including Chairmen and CEOs of major companies with significant investments and operations in Europe.

The composition of the delegation included a broad range of sectors including construction, energy, engineering, logistics, mining and resources, education, law, retail, fashion, telecommunications, investment and banking, tourism, professional services, biotechnology, and finance.

The programme was arranged by the Council in partnership with the Department of Foreign Affairs and Trade, Austrade, and the Australian Missions and Austrade offices in Europe, and their counterparts from Europe based in Canberra and .

In Zurich, Bern, Brussels and Helsinki the delegation met with elected leaders, senior officials and business leaders. The focus of the mission was to examine the political and institutional responses to the European economic crisis, and the performance of economic recovery and growth strategies, progress and support for major trade negotiations, and early reactions to the Brexit referendum in the UK.

Major change is underway at the European level, including new fiscal and banking rules, market regulators, and greater integration across in Europe in transport, energy and digital markets.

The visits to Zurich, Bern, Brussels and Helsinki also focused on ways to further bilateral trade and investment opportunities. Meetings were held with peak business and employer groups, chambers of commerce, and with trade and investment promotion agencies.

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 3 Zurich and Bern Programme

The 2016 Business Mission programme commenced with a series of briefings held at the Park Hyatt Zurich, in which delegates were given an overview of the week to come and held an informal discussion over lunch on the ramifications of Brexit. This was followed by a briefing on the Swiss economy and Austrade’s activities there by David Campbell, Consul General and Senior Trade and Investment Commissioner Western Europe, and Nicolas Bentel, Austrade’s newly-appointed Country Manager for Switzerland. Phoebe Brown, from the Australian Embassy in Berlin (with accreditation to Switzerland), followed up with a political briefing and then Simon Farbenbloom, Deputy Head of Mission to the WTO, briefed the delegated on the currently state of play in the WTO and Australia’s priorities.

That evening the group was joined for dinner by Dr Francis Gurry, Director-General of the World Intellectual Property Organisation, and a discussion took place on the role of IP in knowledge economies.

Monday morning began with a series of presentations by representatives of Economiesuisse: Christoph Lindenmayer, Chairman of the External Economic Affairs Commission (and Chairman of Schindler Management AG) and Thomas Pletscher, Head of Competition & Regulatory Affairs. Mr Pletscher provided a broad overview of the strengths and challenges faced by the Swiss economy, including in its relationship with the EU and the valuation of the Swiss Franc. Mr Lindenmayer followed by presenting on the Swiss engineering and manufacturing sector broadly, and on the industrial group Schindler AG specifically.

The delegation then travelled to the Zunfthaus zur Meisen for lunch with the Swiss Bankers Association, its President Patrick Odier, CEO Claude-Alain Margelisch, and members of its board. SBA members and delegates spoke on a range of issues relevant to the Australian and Swiss banking and financial services sectors. After lunch they met with Fritz Zurbrugg, Vice Chairman of the Swiss National Bank, and discussed monetary and macroeconomic policy issues facing Switzerland.

They then travelled to the premier university ETH Zurich and met with its President, Professor Lino Guzzella, and toured robotics, energy and imaging facilities before returning to the Zunfthaus for a cocktail reception hosted by Austrade and the Australia Swiss Chamber of Commerce with Swiss and Australian business representatives.

On Tuesday morning the delegation travelled to Bern and met with the Swiss State Secretary for Economic Affairs, Ms Marie-Gabrielle Ineichen-Fleisch, for a presentation and discussion on the Swiss economy, with particular emphasis on its current obstacles to growth and on its relationship with China.

The group then travelled to the Bern facility of CSL Behring, where they met with Uwe Jocham, the Senior Vice President and General Manager, and were given an overview of CSL’s activities both in Switzerland and globally before being shown on a site tour where the manufacturing process for immunoglobins was EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 4 Photo Gallery - Zurich

Hon Nick Greiner AC, Dr FrancisLorem Gurry, ipsum Hon dolor Annabelle sit amet Bennett AO SC, and Simon Farbenbloom

Thomas Pletscher, Economiesuisse, presentation on the Swiss economy

The delegation is hosted by the Swiss Bankers Association

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 5 Photo Gallery - Zurich & Bern

Alastair Walton, Hon Nick Greiner AC, Dr Fritz Zurbrugg, Jillian Broadbent AO, Gavin Jackman, Hugh Morgan AC, Jason Collins, and Kevin McCann AM at the Swiss National Bank

Bruce Gosper, CEO of Austrade, speaks at a Swiss-Australian business reception at the Zunfthaus zur Miesen

The delegation outside CSL Behring’s Headquarters in Bern

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 6 Brussels Programme

The Belgian programme began on Tuesday evening with a cocktail reception hosted by Paul de Moor, Managing Director of Kreglinger, at his estate in Zemst with Chairman Archduke Carl Christian of , Mayor Bart Coopman, and Federal Budget Minister Sophie Wilmès.

The political programme in Brussels commenced with a breakfast briefing by HE Dr Mark Higgie, Australian Ambassador to Brussels, Luxembourg, the European Union and NATO.

After breakfast the delegation transferred to the Berlaymont for a series of meetings, beginning with the Head of Cabinet to Commissioner (Lord) Jonathan Hill, Matthew Baldwin. As the British Commissioner, with responsibility for Financial Stability, Financial Services, and the Capital Markets Union, the discussion centred around Brexit and the economic and political fallout of the referendum. The delegation was then joined by Juho Romakkaniemi, Head of Cabinet to Vice-President Kyrki Katainen, European Commissioner for Jobs, Investment, Growth and Competitiveness. They discussed the ‘Juncker Plan’, or European Fund for Strategic Investments, as well as the critical steps being undertaken at the EU level to boost productivity and competitiveness.

The delegation left the Berlaymont to visit the headquarters of BusinessEurope, meeting with its Director-General Dr Markus Beyrer and its Director of International Relations, Luisa de Santos.

They then returned to the hotel and were joined for lunch by Michael Theurer MEP and Jacqueline Foster MEP, Chair and Vice-Chair respectively of the Delegation for Relations with Australia and New Zealand in the European Parliament. The discussion was wide-ranging but focused largely on Brexit, the structural and institutional flaws of the EU, and on the challenges faced by European leaders in communicating the benefits of the European Project.

After lunch the delegation returned to the Berlaymont and met with Elżbieta Bieńkowska, European Commissioner for the Single Market, Industry, Entrepreneurship and SMEs. She delivered a speech covering her extremely broad portfolio, ranging from the consolidated Single Market Strategy to the European Space Program. They were then joined by Head of Cabinet to Vice President Valdis Dombrovskis, Kai Wynands, and other members of his cabinet for further remarks on Brexit, the potential future status of the UK in Europe, and avenues for deepening the economic and monetary union. The final meeting of the day at the European Commission was with Helena König, the lead negotiator on the EU Australia FTA, where she discussed the ongoing scoping study and timelines for the FTA negotiations.

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 7 Photo Gallery - Brussels

The delegation with Paul de Moor, Archduke Carl Christian and Sophie Wilmes at Chateau de Releghem

The delegation meets with Commissioner Elżbieta Bieńkowska

Bruce Gosper, Ambassador Mark Higgie, Michael Theurer MEP, Hon Nick Greiner AC, Jacqueline Foster MEP, and Carla Zampatti AC

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 8 Helsinki Programme

After flying in from Brussels, the Helsinki programme began with a meeting at the Bank of with \ Directors Seppo Honkapohja, for a discussion on Finnish history, macroeconomic policy, the current competitiveness-oriented reform agenda, and broader reform initiatives including the Banking Union.

The delegation then participated in the ‘Northern Light’ European Business Leaders Convention, where delegates participated in a number of discussion sessions on Brexit and other issues, followed by a dinner with former Swedish Prime Minister and Co- Chair of the European Council on Foreign Relations Carl Bildt, Chief Economic Commentator of the Financial Times Martin Wolf, President & CEO of Kone Corporation Henrik Ehrnrooth, and others.

The next and final day of the Mission began with a breakfast meeting with Nobel Laureate and former President of Finland, President Martti Ahtisaari, held in the Mirror Room of the Hotel Kamp. Discussion ranged from the role of the UN and multilateralism more broadly in resolving the crises facing international society, the problem solving capacity of the EU itself.

The delegation then travelled to the Ministry of Economic Affairs and Employment and met with its Deputy Director General Mr Timo Ritonummi, for a briefing on the Finnish energy mix and energy policy, with particular emphasis on nuclear and renewable power.

The group then attended a forum hosted by the Confederation of Finnish Industries, to discuss priorities for growth, the digital economy, energy and climate change policies, and free trade agendas and challenges. Finnish participants in the forum included Veli-Matti Mattila, President and CEO of Elisa, Mika Vehviläinen, President and CEO of Cargotec, and Matti Alahuhta, Chairman of DevCo Partners OY and the Confederation of Finnish Industries. A networking lunch followed the forum, where the group was joined by State Secretary to the Prime Minister Paula Lehtomäki, and by Foreign Minister Timo Soini.

After lunch the delegation travelled to Espoo and participated in an innovation policy forum hosted by the Finnish state research organisation, VTT, with participants from the Finnish Government and their startup funding agency Tekes. Presentations and a discussion on the Finnish innovation ecosystem, Australia’s National Innovation and Science Agenda, Australian startup funding, and IP took place.

For the final meeting of the week, the delegation travelled to the Finnish Foreign Ministry and were shown a number of ships from the Finnish icebreaker fleet, before a presentation and discussion about Arctia, the Finnish state icebreaking corporation, and the Arctic Economic Council.

EABCTo conclude 2016 Business the week,Mission tothe Europe delegation - Mission took Report the (Executive ferry to Summary) Page 9 Valkosaari Island for dinner at Ravintola NJK. Photo Gallery - Helsinki

The delegation gathered outside the Bank of Finland

A panel discussion at the ‘Northern Light’ European Business Leaders Convention

President Martti Ahtisaari and the Hon Nick Greiner AC

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 10 Photo Gallery - Helsinki

The delegation with Foreign Minister Timo Soini

State Secretary to the Prime Minister Paula Lehtomäki, Matti Alahuhta, and Hugh Morgan AC

Final delegation dinner at Ravintola NJK

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 11 2016 EABC Australian Business Mission to Europe Zurich, Bern, Brussels, Helsinki 26 June - 1 July 2016 Delegation Profiles

Philip Aiken AM (EABC Corporate Council) (Brussels & Helsinki) Chairman, Balfour Beatty; Chairman, AVEVA Group; Director, ; Chairman, Australia Day Foundation UK; former Chairman, Robert Walters, former Director, Essar Energy; Former Director, National Grid; former Group President Energy, BHP Billiton

Dr Annabelle Bennett AO SC (EABC Corporate Council) Chancellor, Bond University; Arbitrator, Court of Arbitration for Sport; former Judge, Federal Court of Australia; former President, Copyright Tribunal of Australia; former Chair, National Health & Medical Research Council; former Pro Chancellor, Australian National University

Dan Berry (Helsinki) Vice President, Regional General Counsel and Government Affairs for Europe, Middle East and Africa, Brambles

Jillian Broadbent AO (EABC Corporate Council) Chair, Clean Energy Finance Corporation; Chair, Swiss Re Life; Chair, Health Australia Limited; Chancellor, ; Director, Woolworths; former Director, Reserve Bank of Australia (Australian Government); former Director, ASX Limited; former Director, ; former Director, Woodside Petroleum; former Director, Coca-Cola Amatil;

Georgina Carnegie Advisor, The Sentient Group; Managing Director, Carnegie Enterprises; Member of the Advisory Board, Mawson Resources; Member, Australia Korea Foundation; Member, EmNet Advisory Committee of the OECD; Member, Advisory Council of Asialink

Jason Collins (EABC CEO) Chief Executive Officer, European Australian Business Council; Board Member, European Business Organisations Worldwide; Member, NSW Export & Investment Advisory Board (NSW Government), Director, Australia Youth Trust

Jeff Connolly (EABC Board) (Zurich & Brussels) Chairman & Chief Executive Officer, Siemens Ltd.; National Trustee of CEDA; founding member of the Australian Advanced Manufacturing Council (AAMC); Victorian President and Member of the National Executive of the Australian Industry Group (AIG); Director of the German-Australian Chamber of Industry and Commerce (AHK); member of the Victorian Government Future Industries Ministerial Advisory Council; member of the Prime Minister / Chancellor German- Australian Bilateral Advisory Group, Chairman of the Prime Minister’s 4.0 Task Force; former Chairman of Silcar.

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 12 2016 EABC Australian Business Mission to Europe Zurich, Bern, Brussels, Helsinki 26 June - 1 July 2016 Delegation Profiles

Hon Simon Crean (EABC Board) (Zurich & Brussels) Member, Monash University Council, Chairman, Australian Livestock Exporters Council; former Minister for Trade; former Leader of the Opposition; former Minister for the Arts and Regional Australia, Regional Development and Local Government; Education; Employment and Workplace Relations, former Vice President, Australian Council of Trade

Tom Dery AO (EABC Corporate Council) Chairman, M&C Saatchi Worldwide; Chairman, Australian Cancer Research Foundation; Director, Queenwood School; former Chairman, Helloworld

David Epstein (EABC Board) Vice-President, Corporate & Regulatory Affairs, SingTel Optus; Director, Opera Australia; former Group Head of Public Affairs, BHP Billiton; former Group Executive, Government & Corporate Affairs, Qantas; former Chief of Staff to the Prime Minister (Australian Government)

Professor Stephanie Fahey (EABC Corporate Council) Lead Partner for Education in Oceania, Advisory, EY; Chair, NSW International Education Advisory Board; Vice Chair, Australia China Council; former Deputy Vice Chancellor (Global Engagement), Monash University; former Director, the Foreign Affairs Council; the Australia Korea Foundation; NSW Asia Business Advisory Council; Fellow,

Stephen Fitzgerald (EABC Corporate Council) Co-Founder, Affirmative Investment Management; Deputy Chairman, PineBridge Investments; Director; QBE Insurance Group; Great Barrier Reef Foundation; Member, NSW Government Expert Advisory Panel on Social Impact Bonds; former Chairman, Goldman Sachs Australia and New Zealand; former Member, Board of Guardians, Future Fund

Bruce Gosper (EABC Board) Chief Executive Officer, Australian Trade and Investment Commission (Australian Government), former Deputy Secretary, Department of Foreign Affairs and Trade; former Ambassador to the WTO (Australian Government)

Hon Nick Greiner AC (EABC Chairman) Chairman Emerging Markets, QBE Insurance Group; The Nuance Group; Accolade Wines; Rearden Capital; Deputy Chairman, CHAMP Private Equity; Chairman of Council of Advisors, Rothschild Australia; Chairman Advisory Board, Crosby Textor; Advisor, Transurban; Member, Harvard Business School Asia-Pacific Advisory Board; former Premier and

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 13 2016 EABC Australian Business Mission to Europe Zurich, Bern, Brussels, Helsinki 26 June - 1 July 2016 Delegation Profiles

Justin Howden (EABC Board) Head of Government Relations, Public Policy and Community, Swisse; Director, Complementary Medicines Australia; Director, Swinburne Ventures; former National President, Australian Malaysia Business Council; former President, Australian Philippines Business Council

Gavin Jackman (EABC Board) former Executive Global Head of Corporate Affairs and Social Responsibility, Orica; former Group Executive Public Affairs, Santos; former Director of Government Affairs, BP Australia; former Senior Advisor to Prime Minister of Australia (Australian Government)

Julia King AM (EABC Corporate Council) Chairman, Sapphire Group, Member, The National Library Foundation Board; former Oceania CEO, Louis Vuitton; former Director, Servcorp; Fairfax Media; Opera Australia

Jo Johns (EABC Secretariat) Director, Membership & Programmes and Company Secretary, European Australian Business Council

Kevin McCann AM (EABC Corporate Council) Chairman, The Citadel Group; Sydney Harbour Federation Trust (Australian Government); Dixon Hospitality; Fellow of the Senate, University of Sydney; Vice Chairman, New Colombo Plan (Australian Government); Director, United States Studies Centre; Evans and Partners; former Chairman, ; former Chairman, Origin Energy; former Chairman, Allens Arthur Robinson; former Chairman, BlueScope Steel; former Chairman, ING

Peter McLean (EABC Board) President, Bromma, Vice President & CEO Australia and New Zealand, Cargotec

Hugh Morgan AC (EABC Corporate Council) Principal, First Charnock; Chairman, BioDiem; Director, Hexima; former Chairman, Asia Society Australia; former President, Business Council of Australia; former Board Member, Reserve Bank of Australia (Australian Government); former CEO, Western Mining Corporation; former President, Japan Australia Business Co-Operation Committee; Joint

EABC 2016 Business Mission to Europe - Mission Report (Executive Summary) Page 14 2016 EABC Australian Business Mission to Europe Zurich, Bern, Brussels, Helsinki 26 June - 1 July 2016 Delegation Profiles

Sue Morphet (EABC Corporate Council) Director, Asaleo Care; Director, Fisher & Paykel; Director, Godfreys; Director, Noni B; former Chairman, Manufacturing Australia; former Chief Executive Officer, Pacific Brands

John Sevior Chairman & Founder, Airlie Funds Management; Deputy Chairman, Geelong Grammar Foundation; former Head of Equities, Perpetual Investments

Alastair Walton (EABC Board) Consul-General and Senior Trade Commissioner, Houston (Australian Government); Chairman, BKK Partners; former Chairman, Goldman Sachs Australia; former Chairman, Central Rand Gold; former Director, Film Finance Corporation (Australian Government) former Member, Financial Services Advisory Council (Australian Government)

John Weber (EABC Board) Managing Partner, Australia, DLA Piper; Director, Horizons Program; External Member, Audit and Risk Committee for the Australian Customs Service; former Chief Executive Partner, Minter Ellison; former Chairman, Australian Business Community Network

Carla Zampatti AC (EABC Board) Executive Chairman, Carla Zampatti Group; Board Member, Australian Multicultural Foundation; Director, Sydney Dance Company; former Director, Westfield Holdings; Carindale Property Trust; former Chairman, SBS Corporation (Australian Government)

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