# 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.
- Title: Europe's growth gap: what CEOs say must change · Fortune
- Summary: 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…
- Keywords: europe, economic growth, fortune 500, ceo forum, regulatory reform, energy costs, ai adoption, sustainability, competitiveness, innovation, Europe's, growth
- Source: Fortune — https://fortune.com/2026/09/17/how-can-europe-achieve-its-growth-potential-microsoft-volvo-mastercard-logitech-honeywell
- Author: Sam Forsdick
- Read time: 1 min
- Topics: europe, economic growth, fortune 500, ceo forum, regulatory reform, energy costs, ai adoption, sustainability, competitiveness, innovation
## 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.
## Key takeaway

Europe has talent and innovation strengths but needs to fix its regulatory framework, energy costs, and AI adoption to match U.S. growth rates.