EY's 12-Point Plan Aims to Revitalize Foreign Investment in Europe

**LONDON, June 17, 2025** — In response to a sharp decline in foreign direct investment (FDI) into Europe, the multinational professional services firm EY has released a comprehensive 12-point plan designed to enhance the continent's attractiveness to investors. According to the latest EY Europe Attractiveness Survey, FDI in Europe fell by 5% in 2024, marking the lowest level in nine years, with significant reductions reported in Germany, France, and the United Kingdom, historically the top destinations for investment in Europe.

The survey indicated that 37% of businesses have either postponed, cancelled, or scaled back their investment plans due to high energy prices, regulatory complexities, and geopolitical tensions. Julie Linn Teigland, EY EMEIA Area Managing Partner and Global Vice Chair for Alliances & Ecosystems, stated, "Europe is facing a critical moment, and decisive action taken now can help transform adversity into opportunity. By focusing on these essential measures and taking action, Europe could enhance its global competitiveness by attracting the foreign investment that will help drive sustainable growth for years to come."

The report outlines several recommendations aimed at addressing key challenges and restoring investor confidence. Key actions proposed include:

1. **Reduce Energy Prices**: The report highlights the need to lower energy costs, as businesses are particularly concerned about high electricity prices compared to the United States. An immediate strategy is suggested to create a more competitive energy landscape.

2. **Lead on Sustainability**: Europe's commitment to sustainability is seen as a competitive advantage. Two-thirds of surveyed business leaders believe that Europe's sustainability efforts enhance investment appeal. The plan recommends accelerating the low-carbon energy transition and simplifying access to decarbonization programs.

3. **Supercharge Innovation**: The report notes that Europe lags behind other advanced economies in research and development (R&D) investment. It advocates for improved access to funding for early-stage businesses and enhanced collaboration to drive innovation.

4. **Simplify Regulations**: The complexity of European regulations frustrates businesses, with 45% of surveyed companies indicating that the current tax environment diminishes Europe’s attractiveness as an investment destination. Streamlining regulations and harmonizing approaches across member states is deemed essential.

5. **Make Tax Predictable**: Businesses are deterred by concerns over rising public sector debt and tax unpredictability. A more predictable tax environment, along with corporate tax reductions, is recommended.

6. **Revise Trade Strategy**: The report urges the reduction of internal trade barriers and the establishment of new trade relationships to improve market access.

7. **Champion Strategic Sectors**: Protecting critical industries and promoting innovative sectors such as clean energy and AI are deemed vital for future growth and investment.

8. **Support SMEs**: The importance of small and medium-sized enterprises in the investment ecosystem necessitates targeted support and simplification of related regulations.

9. **Increase Defense Spending**: In light of geopolitical tensions, the report calls for a coordinated approach to bolster European security through increased defense investment.

10. **Enhance Access to Finance**: Improving capital market conditions and creating a favorable environment for venture capital are crucial for attracting investment.

11. **Attract Top Talent**: Addressing the skills deficit by investing in education to foster talent in data and technology is highlighted as essential.

12. **Launch ‘Choose Europe’ Campaign**: A unified investment promotion campaign is proposed to showcase Europe’s strengths, including its skilled workforce and sustainability commitments.

This strategic framework aims to not only enhance Europe’s investment attractiveness but also to promote sustainable growth in the long term. For further details on the findings and recommendations, the full report can be accessed at EY's official website.

### Notes to Editors **About EY**: EY is a global leader in assurance, tax, transaction, and advisory services, dedicated to building a better working world by creating new value for clients, people, and society. The organization operates in more than 150 countries and territories, driven by sector insights and a globally connected network.