From Fortune · Sam Forsdick · · 1m 50s
Europe's growth gap: what CEOs say must change
Europe's largest companies are falling behind the U.S. in growth. Here's what business leaders say needs to happen.
In brief
Europe's largest companies are falling behind the U.S. in growth. Here's what business leaders say needs to happen. Europe has talent and innovation strengths but needs to fix its regulatory framework, energy costs, and AI adoption to match U.S. growth rates. Originally reported by Fortune.
Europe's growth problem is real
European Fortune 500 companies saw revenues rise just under 1% and profits actually decline on a constant currency basis, while U.S. peers grew revenues 5.4% and profits 12.4%.
Regulation is stifling innovation
Microsoft's Samer Abu-Ltaif says Europe needs to shift from over-regulating to creating frameworks that drive innovation, allowing the continent to excel.
Sustainability is a growth engine
Volvo's Nicole Melillo sees Europe's biggest opportunity in the sustainability agenda, with transport manufacturers working together to lower carbon emissions.
Retain talent and fund startups
Mastercard's Kelly Devine says Europe must keep university talent at home and create programs that help entrepreneurs grow and scale their businesses locally.
Energy costs are killing competitiveness
EDF's Alex Chisholm points to high energy costs as the main competitiveness problem, noting Europe imports 97% of its crude oil and 83% of its gas.
Electrification is the answer
Europe's energy system is only 23% electrified. Chisholm says improving electrification will boost competitiveness, the environment, and employment across the continent.
AI can transform productivity
Logitech's Hanneke Faber says AI is a huge opportunity for Europe. Her company built over 3,000 AI agents, embedding the technology across all functions to improve efficiency.
Double down on Europe's strengths
Honeywell's Anant Maheshwari says Europe should focus on its advantages in life sciences, healthcare, aerospace, and defense rather than trying to compete everywhere.
Boards must lead AI transformation
Anthropic's Pip White says the biggest barrier is lack of CEO and board-level commitment to AI. Organizations need to think beyond niche productivity uses to whole-scale transformation.
What matters most
Europe has talent and innovation strengths but needs to fix its regulatory framework, energy costs, and AI adoption to match U.S. growth rates.
