Does it make sense to offer foreign investors subsidies?

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News that VW has delayed a decision on an investment in Turkey has seen promises of subsidies from nations in South East Europe hopeful of becoming alternative investment locations.

Croatia: Long term factors come into play as GDP growth accelerates

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Participation in the EU's single market is driving the integration of local companies into European and global supply chains, gradually increasing absorption of EU is supporting investment, while the reduction in the country's risk profile has seen a return to investment grade status, thus lowering funding costs for the economy. These are all structural, as opposed to cyclical, reasons for optimism Croatia's growth potential.

Speed also kills when making investment decisions

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China's Belt and Road Initiative offers a quicker, debt financing path to investments than EU procedures. But EU grants, as long as stringent conditions are met, are a far more sustainable and less risky option for EU member states.