3 Issues Affecting Business Interests in Europe

Refugees Associations Now May/June 2016 Issue

According to experts at the "Europe Today: What Associations Need to Know" event, there are issues, including the refugee crisis and Britain's potential exit from the EU, that could affect association global interests across the Atlantic.

As global expansion among associations continues to grow, organizations are keeping an eye on Europe and the issues that could affect business interests in the region, according to experts speaking at "Europe Today: What Associations Need to Know," a panel event held recently at ASAE.

1. Refugee Crisis

More than a million refugees crossed into Europe last year. According to the International Organization for Migration, that's more than a 270 percent increase from 2014.

The influx of refugees has placed an unequal burden on some European Union member countries, which have found themselves at odds over how best to resettle migrants—Germany alone reported more than a million asylum claims last year—and has left some questioning the European Union's stability.

2. Brexit

Britain's potential exit from the EU, officially known as the United Kingdom European Union membership referendum, has become an increasingly tangible reality.

British Prime Minister David Cameron set June 23 as the date Britons will vote to stay or go, and while the chances originally seemed slim that the United Kingdom would leave the EU, the movement has garnered increasing support given the current state of the euro and Europe's migrant crisis.

Regardless of the outcome, the vote will have profound implications for the economies of the European Union and Britain, said Nele Devolder of Kellen Company, speaking at the "Europe Today" event.

"It's very hard to predict," she said of the vote. If Britain does leave, the effects would not be felt for several years and would vary by sector. Financial services, life sciences, and industries where data plays a key role could feel the biggest impact.

3. Safe Harbor

In October 2015, Europe's top court declared invalid the so-called safe harbor rules that had governed the transfer of data between the continent and the United States since 2000.

Under the rules, U.S. companies could "self-certify" the security of Europeans' personal data sent across the Atlantic. But following the European Court of Justice decision, which came after concerns were raised over the security of Facebook data, the United States and European Union had to create a new data-transfer deal, which they agreed on in February.

The new deal comes with fresh commitments and principles that companies will need to abide by. For associations that have EU membership or business activity, Devolder advised preparing for the new rules by mapping data flows. "What information do you have? Who do you work with in Europe? Who are your suppliers?" she said. "Map that type of information and get legal advice."

[This article was originally published in the Associations Now print edition, titled "Eye on Europe."]