Most companies active in Europe plan to expand, survey finds

Europe ranks ahead of Asia and North America as a destination for business investment, a survey of leaders from other regions shows. Germany and the UK were the top two target countries.

Confidence in Europe is growing among business leaders. More than a third of decision-makers (35%) name Europe the most attractive region for their business, ahead of Asia-Pacific (excluding China) and North America, a global survey shows.

Sixty-one per cent of companies already invested in Europe in Deutsche Bank’s Global Sentiment Survey on Europe 2026 plan to expand over the next five years, and 33% of respondents said their companies are planning or actively considering market entry.

Deutsche Bank surveyed 1,200 senior leaders and decision-makers across 13 markets in July and August. Only companies that already invest or operate in Europe or that are planning or actively considering market entry within the next five years were included in the survey. The breakdown of respondents geographically was 600 from Asia-Pacific, 200 from the Americas, and 200 from the Middle East.

For 74% of respondents, Europe’s growth opportunities were viewed as an advantage over other regions. Also, 71% cite Europe’s capacity for innovation as a strength, particularly when combined with the potential of AI, the survey found. Other drivers include international relationships (70%) and economic and market stability (68%).

“Europe remains an attractive consumer market, while its industrial importance continues to grow,” the survey said. Almost all respondents (99%) view Europe as an important consumer market, and 92% cited it as desirable for its global position in production, research and development, and supply-chain stability.

The main barriers to company investment in Europe were cross-border regulatory friction, slow approval processes, high labour and energy costs, and a complex tax environment.

Among potential investment destinations, Germany was the top choice, the survey showed. Germany was in the top three choices of 56% of respondents, ahead of the UK (47%) and France (35%).

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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