“Harmonisation or national focus? Is there a best way for Europe?” EU+Freer Markets = Better Chance for Acceding Countries? EuroForum Conference, 16th May, 2003, Vienna, Austria Session: “The Freedom of commercial communications In new Europe” By: Ottó László IAA Eastern-Central European Sub-Area

CONTENTS I.INTRODUCTION / IAA II.THE ACCEDING ECE COUNTRIES 1. IAA Chapters 2. INCOME PER PERSON 3.PURCHASING POWER INDEX 4.SOME IAA CHAPTER VIEW 5.ADVERTISING SELF REGULATION III.ARGUMENTS FOR ADVERTISING 1. „TREE” OF FREEDOM OF SPEECH 2.„BEDROCK ARGUMENTS” 3. „TRANSFORMING UNDERDEVELOPMENT” IV.CONCLUSION

IAA The only global advertising association including: –Advertisers –Ad agencies –Media In 4 continents In 95 countries Over 3600 members (individual, corporate, organizational, academic) Mission/Role –Commercial speech, –Consumer choice –Self-regulation

I.The next 10 EU countries, /1. IAA Chapters in Europe Source: IAA, Index.hu Cyprus Malta European Union Acceding countries Candidates

I./2. INCOME PER PERSON IN EUROPE, GNI PER CAPITA, Source: World Bank, 1999 Source: IAA, Index.hu Cyprus Malta Low, ($ 755 or less) Lower Middle ($ ) Upper middle ($ ) High ($9266 or more)

I/3. PURCHASING POWER INDEX * OF THE ACCEDING ECE COUNTRIES, (100=Germany)Source: GfK Hungary, 2002 Switzerland 131 Germany 100 Slovenia 69 Czech Rep. 51 Hungary 50 Poland 40 Slovakia 38 Estonia 32 Latvia 23 Lithuania 22 Ukraina 11 Lower middle (21-39) Upper middle (40-64) High (65 or more)

I./ 4. Some IAA Chapter View, / for example: Hungary 2003 * Certain general harmonization is required Certain degree of national focus is also needed Hungary has experience about advertising regulation in the EU, and put into practice. Purpose: combination of EU and national aspect

I./ 5. Advertising Self Regulation 2003 No Self Regulation Adv. Self Regulation

Tree of Freedom of Speech Freedom of Political Speech Freedom of Commercial speech Freedom of Artistic Speech Freedom of Relegion *: Source: Dr. John Gray, philosopher, Dr. Digby Anderson, Sociologist, in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut II. Arguments * 1.„Branches” of the Tree of Freedom of Speech

Arguments * 1.„Branches” of the Tree of Freedom of Speech *: Source: Dr. John Gray, philosopher, Dr. Digby Anderson, Sociologist, in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut WHY? 1. Because they are all persuading us to do something 2. All form of speech are addressing the same consumer

Arguments * 2. „Bedrock Arguments” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut Advertising creates & encourages competition

Arguments * 2. „Bedrock Arguments” Advertising encourages product innovation *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut

Arguments * 2. „Bedrock Arguments” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut Advertising creates jobs

Arguments * 2. „Bedrock Arguments” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut Advertising helps provide independent, diverse,affordable media

Arguments * 2. „Bedrock Arguments” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut Advertising subsidizes a large part of the entertainment industry – especially Sport & Music

Arguments * 2. „Bedrock Arguments” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut CHOICEAdvertising gives the consumer CHOICE

Arguments * 3. „ Transforming underdevelopment ” *: Source: in Richard Corner’s presentation delivered to the39th IAA World Congress, 24th May, 2002, Beirut Dialogue through relationships with governments and authorities to further the promotion of free market economies, driven by advertising and consumer choice.

IV. CONCLUSION MAJOR ADVANTAGE OF PROTECTION OF ADVERTISING IS THAT IT CAN HELP THE ACCEDING ECE COUNTRIES TO CATCH UP WITH THE REST OF CURRENT EUROPEAN UNION

IV. CONCLUSION EU+Freer Markets = Better Chance for Acceding Countries? YES

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