Latest figures from the European Information Technology Observatory (EITO) show that ICT spending in the European Union will grow by 3.1% in 2006 to €644bn. EITO is also now forecasting overall ICT growth in the EU in 2007 of 2.9% of €663bn.

Figures for 2006 show IT growing by 3.8% with telecommunications up by 2.5%. EITO believes this growth gap will widen next year.

“An overall positive business climate and improved general economic development together with new digital convergence technologies are favourable for ICT investment”, noted EITO chair, Bruno Lamborghini. “The boom in broadband lines, together with the strong recovery of software and IT services markets, open new opportunities for Europe to actively participate in the new digital challenges at world level”, he said.

The news will reassure industry players still nervous about the sustainability of their recent recoveries. It also points to a potential springboard for ambitions of competing in global markets against giants from the US and Asia.
Jim Chalmers