With the European elections approaching, BusinessEurope has released its Spring Economic Outlook, advocating for a reboot in EU policymaking to enhance Europe’s competitiveness and strengthen its industrial base.
Commenting on the report, BusinessEurope Director General Markus J. Beyrer noted: "There are signs that growth in the EU economy may bounce back a little this year, with rising real wages and the prospect of lower interest rates both likely to increase demand. But improvements in overall EU output must not distract us from the huge challenges being faced by the industrial sector, particularly as a result of high energy prices and an increasing regulatory burden."
According to Beyrer, EU industrial output remains barely above pre-Covid levels, with capacity utilization at its lowest level since 2013 (excluding the Covid period). Additionally, 74% of BusinessEurope member federations believe that the business climate for industrial producers has either worsened or shown no improvement over the last six months.
"EU leaders must use the momentum from the Letta and forthcoming Draghi reports to put competitiveness and the single market at the heart of the next political cycle and develop a long-term European growth strategy," Beyrer emphasized.
The report indicates that EU businesses now expect economic growth of 1.2% in 2024, increasing to 1.8% in 2025. This represents a 0.4 percentage point downward revision for 2024 compared to their Autumn Economic Outlook.
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