GCs at businesses in Europe and the US are optimistic about prospects for European investment and growth despite political and economic headwinds, according to a report by law firm association ADVANT.
The report – Europe’s Opportunity Outlook – found that 82% of GCs and their companies view continental Europe as attractive for corporate investment and commercial expansion, while 66% said their organisations have made Europe more of a priority given broader geopolitical and regulatory risks.
Another 83% said they believe their organisations are likely or very likely to expand or invest further in existing European markets over the next three to five years, with 82% saying they are also likely to expand into new or additional territories in the region.
The survey data showed US GCs are even more bullish than their European peers on Europe’s prospects, with 87% of US-based GCs believing Europe will benefit from global business expansion into the region, compared to 69% in Italy, 71% in France and 76% in Germany.
Gilles Gaillard, partner at ADVANT Altana, said: “The EU has an enviable position as one of the world’s largest economies, a major producer and exporter of goods and services, and one of the most reliable and respected legal and regulatory systems anywhere.
“Recent geopolitical and economic turbulence has brought into sharper relief just how attractive Europe is as an important and resilient place to invest and do business. This reality is clearly reflected in the views of GCs, who are central to how companies prepare for and respond to a world characterised by fast-paced change.”
However, one in five GCs believe that the EU needs to simplify and harmonise trading rules to make the region more attractive to foreign businesses, while 16% called on providing greater tax incentives and 15% said more should be done to encourage innovation.
Some 12% of GCs also believe that European regulators fail to understand the commercial realities of operating in the region. GCs said AI (41%) and cybersecurity (38%) both require urgent legal or regulatory attention or reform, with 42% saying those issues are a major concern for legal teams.
Christian von Wistinghausen, a partner at ADVANT Beiten, said: “The EU has set out clear objectives to fuel competitiveness and foster future prosperity by simplifying regulation and better aligning EU and national policies, but the jury is still out on whether these actions go far enough, fast enough.
“There is a real risk that the volume and complexity of regulation have the potential to put businesses operating in Europe at a disadvantage compared to lighter-touch jurisdictions.”
The findings were based on a survey of more than 800 GCs in France, Germany, Italy and the US.
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