The European pulp and paper industry looks back on a difficult first half-year. Considerable cost increases in raw materials and additives, power and transport, unfavourable developments in exchange rates, slack demand on many markets and decaying prices led to the results achieved by numerous companies in the first six months of this year falling well short of those for the same period of last year. In view of the difficult underlying economic conditions, many companies in the European pulp and paper industry are putting their hopes in price increases aimed at cushioning the effects of the continuous rise in costs.