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2011 European attractiveness survey - Restart - EY - Global

Download EY's 2011 European attractiveness survey as a printable document (4.5 MB PDF)

May 2011: From Tokyo to Tunis, from Lisbon to London, natural, social and economic events have recently impacted our world.

Combined with the continued impact of globalization and demographic shifts, business, central government and even civic leadership are being conducted in a world that is significantly more complex than it was in 2003 when we conducted our first European attractiveness survey.

"In 2010, the number of European FDI projects rose 14% year-on-year and 137,337 new jobs were created."

We now live in a world that is no longer dominated by developed markets. A world where the unrestrained use of finite natural resources and a “profit at all costs” pro-business attitude has been challenged by rising demand, a more conscious consumer base and a recognition of the interconnectedness of world markets.

Europe remains the largest regional destination for FDI, albeit with a reduced share. A quarter of all consumption and investment takes place within its expanding borders. It remains a formidable force, but it must invest in its potential to lead by innovation and entrepreneurship.

This must be at the heart of Europe’s agenda and it requires that Europe finds new ways to compete, and more importantly, selects its own way to lead.

This report explores the new dynamics of the European economy, including:

Jay D. Nibbe Jay D. Nibbe

EMEIA Deputy Area Managing Partner - Markets
Marc Lhermitte Marc Lhermitte

EY Advisory

 Viewpoint: Restarting Europe’s real economy

Viewpoint: Restarting Europe’s real economy

Antonio Tajani
Industry and Entrepreneurship,
European Commission
“I want the real economy, industry and small and medium enterprises (SMEs) to be center stage. We need to give our younger generations hope and a vision for the future through growth and jobs.

To restore confidence in the markets, leave the financial crisis behind us once and for all, and prevent economic and political decline, we need to close the gap with the spectacular growth of emerging economies and support innovation. This will only be possible if we really bet on our entrepreneurship, industry and SMEs, and on their capacity to adapt to the global challenges and opportunities.

Every year, millions of new consumers emerge in China, India, Russia and Brazil. This is a great potential market for innovative, high-quality European products. But to win the inventiveness -battle in our globalized market, our industry and SMEs need to restructure, modernize and invest in innovation.

Our industry can compete on quality and innovation, but changes like these must be financed, and this requires financial markets to refocus on the needs of the real economy.

We also need to make it easier for SMEs to run their businesses. Some 99% of all European businesses are independent and have fewer than 250 employees.

It is much easier to believe that we can create 23 million new jobs if our 23 million SMEs each employ just one more person, than to expect 3,800 new jobs to be created by each of our 6,000 blue chips.

Through the strengthening of the Small Business Act, I’ve put improving the business environment, access to credit and internationalization of SMEs, at the very top of my political agenda. We need to change our culture, to “think small first” when it comes to policy-making and regulation, and to make new generations excited about starting their own businesses.

Lastly, we are facing a new industrial revolution. Demographic growth and new consumers in emerging markets result in fierce competition for energy sources and raw materials, and increase speculative risks.

Together, these could seriously threaten our industry and sustainable growth. But the need to use resources more efficiently could also be a great opportunity for our future competitiveness if we make the right political choices and invest to promote our know-how and technological leadership, especially in greener technologies.”


    Video: Marc Lhermitte

    "EY's 2011 European attractiveness survey" video, presented by Marc Lhermitte.


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