Strengthening your presence in North America developed by the majority of CEOs involved in a group of large enterprises Europe, as concerns are growing that Europe began to lose its competitiveness. In particular, according to Bloomberg, about 57% of the heads of multinational corporations based in Europe are considering switching attachments or operations—or both—on the other side of the Atlantic within the next two years. This is the result of a study by the European Round Table of Industrialists and the New York-based Conference Board think tank. The vast majority of respondents – at least 80% – believe that Europe is losing its competitiveness as a base for industry.

This is because the Old Continent is buckling under the weight of geopolitical risks, high inflation and high energy costs. There are also skills shortages and disruptions in supply chains.

Two-thirds of multinational CEOs believe that the current geopolitical tensions will negatively affect their business prospects.

Russian invasion of Ukraine exacerbated an already difficult business climate in Europe, characterized by lower productivity growth and occasional crises. In fact, at least two-thirds of respondents believe that the current geopolitical tensions will affect their business prospects either “somewhat negatively” or “negatively.” “Europe’s efforts to restore competitiveness are facing more challenges than ever with geopolitical instability, higher energy prices than pre-2019 levels, escalating inflationtighter credit conditions and the cost of imports at a record level,” the related review says.

However, European leaders are moderately optimistic about the current economic situation, with sentiment showing an improvement compared to the second half of 2022. However, only a quarter of respondents remain optimistic about the next half.

The European Roundtable of Industrialists includes 60 heads of leading multinational corporations based in Europe. A total of 56 company executives took part in the survey, which was conducted in collaboration with the Conference Board. “The implications are clear and there are urgent signs that the future of Europe as a leading industrial base is at stake,” said Martin Brendermüller, chief executive of BASF and chairman of the competitiveness committee at the European Industrialists Roundtable. “Geopolitical tensions have serious implications, and we in Europe are at the center of things,” he added, according to Bloomberg.