Second sectoral report on the competitiveness of the Book publishing sector was recently published by the Publishing Market Watch. Supported by the European Commission Enterprise Directorate-General, this 12-month project is analysing European publishing industry. After Newspaper, current report focuses on the European book publishing. The report includes exhaustive statistical analysis of the sector and a discussion of key business issues and trends. According to the paper the book industry is mature with stable sales per capita across EU. From the business perspective the key issue for the book publishing is to find new ways to grow. Therefore in the future important challenge will be to develop innovative products to further increase number of readers. As the report revealed Books industry depends heavily on the distribution channels thus, it may happen that even though the volume of books rise the turnover of publishers can still fall due to the larger percentages of transaction taken by the distribution channel. The project's culmination phase will take phase during the "Validation Workshop' where the main findings from all sectoral report (Newspapers, Books, Magazines and Directories) and issue papers will be presented. The Discussion will take place at the European Commission on 17th September, where the industry representatives will exchange views and comments on the key issues impacting the competitiveness of publishing industry in Europe. The reports and issue papers being part of the PMW project can be found on the Europa website and on the site of Publishing Market Watch:http://www.publishing-watch.org