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Microsoft sees ICT investment as crisis-beater

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Published 08 October 2009

At a time when Europe's economies find themselves walled in by high budget deficits and unemployment, a recent Microsoft-sponsored study claims that investments in information and communication technologies could make all the difference.

"ICT is the place where governments should be putting their stimulus packages to make cost savings going forward," said John Vassallo, Microsoft's vice-president for EU affairs, commenting on the study's findings on Wednesday (7 October). 

At the end of every crisis there is growth in the most innovative industries, argues Vassallo, who cited the 1930s boom in the household appliances, media and car industries. 

"Now we think the growth that will emerge out of this crisis will be investment in enabling technologies as the way to make it cheaper and more efficient to do what we were doing before." 

Viviane Reding, the EU commissioner responsible for the information society, argued around similar lines earlier this year that "broadband has a direct impact on productivity growth" and could help boost economic growth and stave off rising unemployment (EurActiv 20/03/09). 

"Data show that those EU member states that are broadband leaders grow by 0.5% faster than the slow adopters," she said. 

The study commissioned by Microsoft makes the case for further investment. In the EU from the end of 2008 to the end of 2013, IT spending will grow 2.1% a year, create 574,000 jobs and 16,000 new businesses, it predicts. The study also predicts IT-related activities will generate €265 billion in taxes alone in 2009. 

The group of companies using Microsoft technologies will generate nearly €110 billion in 2009, according to the paper. 

Investment in digitising health care, argues Vassallo, is one of the fundamental ways to reduce the costs of health care. One example of an eHealth platform would integrate pan-European health records, including those of local GPs, pharmacists, hospitals and patient records, saving administrative and travel costs. 

Last week the EU's health commissioner, Androulla Vassiliou, asked ministers to make sensible choices in their budgets by prioritising investment in emergency services, saying this may mean sacrifices on new technologies such as eHealth. 

Citizen Relationship Management (CRM) – Microsoft-speak for advanced eGovernment – is another area where "tremendous" cost savings can be made, Microsoft's Vassallo argues. A web platform would allow citizens access to a range of services including social services, tax records and permit applications, among others. 

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