BUSINESSEUROPE Reform Barometer 2023 - The EU's global competitiveness under threat

The 2023 BUSINESSEUROPE Reform Barometer was published on 21 March.

Key findings

Around 90% of our member federations consider that compared to our global competitors, the EU investment environment is less attractive than 3 years ago.

• Foreign direct investment inflows to the EU fell by 68% in 2021 compared to 2019, contrasting with a 63% increase in the USA during the same period.
• The number of greenfield investment projects in the EU fell by 15% between 2021 and 2022, compared to an 18% increase in the USA during the same period.

Almost 90% of members consider energy prices as the biggest challenge to Europe’s investment environment, and the main driver of the EU’s deteriorating competitiveness over the last 3 years.

• Wholesale gas prices increased in the EU by over 1100% between 2019 and their peak in 2022, compared to increases of around 200% in the USA and 100% in Japan.

The regulatory environment is perceived as the second of the top three challenges by almost 60% of our members.

• The majority of members consider regulatory burdens to be higher in the EU than in other major developed economies.
• Our members have also noted a decline in the quality of application of EU better regulation tools in recent years.

Detailed assessments by national member federations can be downloaded from the table below. Download here the full list of detailed assessments by national member federations (answered received as at end-February).