European Business Leader Optimism Dips

Citizens and Business Leaders United in Calling for Europe's Reinvention

• Time is running out for Europe: 96% of business leaders, supported by 85% of citizens, say Europe must urgently protect its commercial interests to avoid severe consequences.
• Business confidence is weakening: Optimism among European business leaders has fallen by 15% since Liberation Day (early April 2025) as hopes for bold, rapid action have yet to materialize.
• "More Europe" is the preferred path forward: Over 60% of business leaders and citizens support deeper cooperation and coordination to strengthen competitiveness—rather than less.
• A broad consensus for reset is emerging: Around 80% of both citizens and business leaders agree that Europe needs radical change, with support for a focused reform agenda.
• Citizens want business leaders to step up: 76% of citizens—and 93% of business leaders themselves—support greater public engagement by business leaders, including within institutions.

BOSTON, Jan. 25, 2026 /PRNewswire/ -- The second edition of Boston Consulting Group's European Competitiveness Barometer, released today, signals widespread concern across the private sector, with 93% of executives warning of potential dire consequences for Europe's competitiveness, innovation, and job retention.

The report, based on a November 2025 survey of 850 C-level executives and over 6,400 European citizens, finds that 96% of business leaders believe the EU must take immediate steps to protect its commercial interests to avoid severe long-term consequences. That view is echoed by 85% of European citizens.

"Europe can no longer afford to debate whether it has a competitiveness problem—leaders and citizens agree the time for radical change is now," said Matthias Tauber, Head of BCG in Europe. "We need to shift gears to how fast and how far we are willing to go."

"More Europe," not less, emerges as the path forward for both business leaders and citizens

Growing frustration with institutional stagnation in both citizens and executives is fueling a demand for a different approach in the European project. Over 60% in both groups believe the solution lies in "more Europe," calling for stronger cooperation, deeper alignment, and more coordinated actions focused on a small set of sectors and countries. This view holds across geographies, including in France, Germany, Italy, Spain, and the Nordics.

Other key findings include:

• 80% of both business leaders and citizens agree that only radical change can restore Europe's competitiveness
• 85% of executives say the EU has reached an institutional "dead end"
• 95% of executives support a focused reform effort led by a small group of countries
• Top sector priorities include energy, defense, capital markets, and innovation
• 87% of business leaders support reducing tax burdens, easing labor laws, and simplifying regulation

Consensus on change, and diverging national starting points with Italy's momentum continues to rise

Within this shared call for a different European approach, national sentiment diverges, with countries differing in levels of confidence, urgency, and expectations for how change should unfold.

Confidence is lowest in France and Germany, where only 27% of French citizens and 29% of Germans express optimism about Europe's competitiveness. Business leader sentiment mirrors this caution, with optimism at 61% in France and 60% in Germany, reinforcing alignment between public and private views rather than divergence.

Optimism among Italian business leaders has risen since early 2025 to 81%, and citizens show strong backing for renewal, including 87% support for a new generation of pragmatic leaders and 88% calling for greater business leader involvement.

Elsewhere, sentiment is more measured, but the message is the same. Support for deeper European cooperation remains strong across countries—reaching 80% among Spanish business leaders—underscoring a shared belief that Europe's future requires more Europe, not less.

Business leaders align on five strategic priorities to restore Europe's competitiveness

Business leader respondents across Europe highlight the need for decisive action across technology, energy, finance, defense, and supply chain sovereignty to strengthen Europe's economic position.

• New technologies with strong support for targeted fiscal incentives and the creation of a European version of the US DARPA (Defense Advanced Research Projects Agency) style agency to back high-risk, high-impact innovation.
• In energy, leaders call for a diverse, decarbonized energy mix, emphasizing the role of nuclear power, alongside accelerated electrification and the development of a fully integrated European grid.
• Investment and financing reforms are critical, with a clear push to harmonize banking regulations, integrate capital markets, and scale up Europe's venture ecosystem.
• Defense is viewed as a strategic industrial pillar, with leaders advocating for greater European cooperation and integration to achieve scale and resilience.
• Supply chain and strategic sovereignty rank high, with strong backing for supporting key European players and reducing external dependencies in critical sectors.

Citizens call on CEOs to step up. CEOs are ready to act, but constraints remain

The report finds strong support for business leaders to play a more active public role. Ninety-three percent of executives and 76% of citizens want CEOs to be more directly involved in shaping European economic strategy, and 91% of leaders support an EU-level CEO working group. However, concerns remain: 64% cite reputational risks and 54% point to the lack of political engagement as barriers to public participation.

"Europe's business leaders are not asking for permission—they are asking for a platform," said Sylvain Duranton, Global Leader of BCG X, the tech build and design division of BCG. "If institutions can make space for action, European business leaders are ready to lead."

Download the publication here:
https://www.bcg.com/publications/2026/european-ceos-and-citizens-want-economic-strength

Media Contact:
Eric Gregoire
gregoire.eric@bcg.com

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SOURCE Boston Consulting Group (BCG)