BUSINESSEUROPE Reform Barometer 2024 - Putting competitiveness at the forefront of the next political cycle

Key findings

2023 was another disappointing year for the European economy, with growth of only 0.5%, compared to 2.5% in the US, the seventh time in the last ten years that US growth has exceeded that in the EU.

Our survey of member federations last year showed that around 90% of our federations believed that global firms see the EU as a less attractive investment location in comparison to our international competitors than was the case 3 years ago.

This year’s survey shows the EU has failed to halt the decline in its attractiveness, with the majority of our Member Federations considering that the attractiveness of the EU as investment destination for global firms has stagnated or even declined over the past year.

Improving long-term productivity, including through the adoption of new technologies such as AI, will be key to long-term growth and competitiveness.

• In recent years, the EU has failed to close its long-term productivity gap with the US, with overall EU productivity in 2022 only 75% of that enjoyed in the US.
• The gap in productive investment between the EU and the US continues to widen. Productive investment in 2022 amounted to 15% of GDP in the US versus 11% in the EU.
• The US has developed a huge lead over the EU in terms of its investment in intangibles investing 20.2% of GDP in 2019, compared to the EU’s 14.6% in 2019.
• Overall greenfield FDI project numbers declined by 2% in the EU in 2022, compared to growth of 45% in Asia and 19% in North America.

To tackle the long-term and structural challenges facing Europe, a coordinated vision across policy areas is required.

You can also read our press release.

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-January 2024).