BusinessEurope: Trump's policies could undermine EU's investment appeal

The majority of European companies fear an outflow of investments from Europe to the United States due to President Donald Trump's policies. According to a BusinessEurope survey, 85.7% of respondents believe that US policies pose a threat to the European economy. Meanwhile, none of the respondents see a positive impact from these measures on the EU.

Businesses are also concerned about the slow pace of reforms in the EU, compounded by a complex bureaucratic system. Citing statistics, Lucio Vinhas de Souza, chief economist at BusinessEurope, highlights the deterioration of investment conditions alongside growing regulatory burdens. Given the difference in decision-making speed between the US and the EU, he predicts a further strengthening of America's competitive advantage.

Acknowledging the issue, the European Commission, led by Ursula von der Leyen, is developing measures to reduce the administrative burden. However, implementing the necessary changes has proven challenging due to coordination difficulties among the 27 member states. Assessing the situation, de Souza warns of a potential widening of the gap in investment appeal between the US and the EU in the coming years.