EU IT markets expand.

The IT markets of the 10 states that joined the EU in 2004 are set to stay hot for the foreseeable future, and EU membership is playing a critical role. According to a new study by IDC, direct and indirect sources of funding will boost annual IT spending growth by more than 2.2 percentage points over the 10-year period 2004-2013. This amounts to an additional $27.6 billion that would otherwise have been unavailable for upgrading infrastructure, investing in software, and employing service providers. Recent economic indicators provide strong evidence that EU membership has been good for the economic development of the 10 states that joined in 2004. According to Eurostat, with the exception of Malta, the new members had GDP growth rates well above the EU15 average of 1.5% in 2005 and 2.6% last year. Both Estonia and Latvia have seen their GDP growth soar past 10%, putting them among the fastest-growing economies in the world. But membership has been even better for the IT markets. While consumers use their increased spending power to buy or upgrade IT, businesses are under additional pressure to adopt the technology and transparency standards of international players to deal with the increasingly competitive environment. Then there is the law. According to IDC, regulations represent a key IT market driver that is often underestimated in its impact. From the much publicized telecommunications regulations and data privacy acts to lesser-known laws on digital signatures and customs administrations, the EU has set a broad range of policies and guidelines in which the use of information technology is crucial for compliance.