EU business confidence plummets, finds report
A draft report from the European Commission indicates that the appeal of the EU for businesses is diminishing. Read Full Article at RT.com.
TroibNews 
High energy prices and bureaucratic obstacles are compelling businesses to relocate, warns a European Commission draft report.
The EU is increasingly losing its attractiveness to companies, with many opting to set up elsewhere, according to a report from the German news agency dpa on Saturday, which cited the draft economic paper by the European Commission. The report highlights a concerning statistic: only four out of the world's 50 largest technology companies are based in Europe.
“Europe’s attractiveness as a business location is declining,” the report states, set for an official release next week. It reveals that between 2008 and 2021, nearly a third of the unicorn start-ups established in the EU moved their headquarters overseas, primarily to the US. These unicorns, which are privately-owned companies valued at over $1 billion, often focus on technology, experience rapid growth, and draw substantial investment. They are perceived as beneficial to economies at a macro level by setting new industry standards through technological progress.
Notable unicorns that began in Europe and later shifted their headquarters to the US include Swedish fintech Klarna, Romanian-founded UiPath specializing in robotic processes, and Swedish music streaming service Spotify.
The draft document points to persistently high energy costs in Europe—ranging from two to three times those in the US—as a significant disadvantage for the bloc’s economic competitiveness. Bureaucratic hurdles compound this issue by inflating costs and complicating business operations, which restricts innovation and rapid scaling. Additionally, the report notes that productivity in the EU, or the added value produced per hour of work, has been on the decline and lags far behind that of the US.
The report also emphasizes a shortage of qualified workers in the region, which is hindering the European internal market from maximizing its potential.
In reaction to the report, European MP Markus Ferber indicated that it should serve as a call to action for EU policymakers and stressed the immediacy of implementing structural reforms.
“The report shows that the issue of competitiveness must be a central theme in the Commission’s work in the future. There is a risk of a significant loss of prosperity,” he remarked.
Former European Central Bank President Mario Draghi echoed these concerns in November, insisting that the EU requires urgent economic reform to restore competitiveness and avert further decline. Draghi underscored the necessity for substantial investment in innovation, estimating that as much as €800 billion annually, roughly 5% of EU GDP, may be needed.
The European Commission is anticipated to unveil a significant legislative proposal by the end of February to tackle the current economic challenges faced by the bloc, according to dpa.
Anna Muller for TROIB News
The EU is increasingly losing its attractiveness to companies, with many opting to set up elsewhere, according to a report from the German news agency dpa on Saturday, which cited the draft economic paper by the European Commission. The report highlights a concerning statistic: only four out of the world's 50 largest technology companies are based in Europe.
“Europe’s attractiveness as a business location is declining,” the report states, set for an official release next week. It reveals that between 2008 and 2021, nearly a third of the unicorn start-ups established in the EU moved their headquarters overseas, primarily to the US. These unicorns, which are privately-owned companies valued at over $1 billion, often focus on technology, experience rapid growth, and draw substantial investment. They are perceived as beneficial to economies at a macro level by setting new industry standards through technological progress.
Notable unicorns that began in Europe and later shifted their headquarters to the US include Swedish fintech Klarna, Romanian-founded UiPath specializing in robotic processes, and Swedish music streaming service Spotify.
The draft document points to persistently high energy costs in Europe—ranging from two to three times those in the US—as a significant disadvantage for the bloc’s economic competitiveness. Bureaucratic hurdles compound this issue by inflating costs and complicating business operations, which restricts innovation and rapid scaling. Additionally, the report notes that productivity in the EU, or the added value produced per hour of work, has been on the decline and lags far behind that of the US.
The report also emphasizes a shortage of qualified workers in the region, which is hindering the European internal market from maximizing its potential.
In reaction to the report, European MP Markus Ferber indicated that it should serve as a call to action for EU policymakers and stressed the immediacy of implementing structural reforms.
“The report shows that the issue of competitiveness must be a central theme in the Commission’s work in the future. There is a risk of a significant loss of prosperity,” he remarked.
Former European Central Bank President Mario Draghi echoed these concerns in November, insisting that the EU requires urgent economic reform to restore competitiveness and avert further decline. Draghi underscored the necessity for substantial investment in innovation, estimating that as much as €800 billion annually, roughly 5% of EU GDP, may be needed.
The European Commission is anticipated to unveil a significant legislative proposal by the end of February to tackle the current economic challenges faced by the bloc, according to dpa.
Anna Muller for TROIB News
