Impatient for Change, Corporate Leaders remain Optimistic about the Future of the European Union

Abu Dhabi (UAE), Fontainebleau (France), Singapore — June 6, 2013 – European business leaders are impatient about changes to be made in Europe. Yet, they remain optimistic about the European Union’s long-term prospects for prosperity and global prominence. This is a core message of the 2013 State of the European Union (E.U.) Report released today by INSEAD, Booz & Company, and the European Executive Council (EEC).

‘Business leaders want to move the debate beyond whether budget austerity or growth stimulation will revitalise Europe,” says Javier Gimeno, professor of strategy at INSEAD, the leading global business school. “Nine out of 10 respondents call for targeted actions to improve productivity and competitiveness,” added Gimeno, who is academic director of the INSEAD European Competitiveness Initiative, which provides research-based insights into how Europe can bolster the success of its business community and related institutions.

The report, titled ‘Growing Europe: The Competitiveness Imperative’, reveals that corporate leaders are more pessimistic about Europe than they were last year (61 per cent compared to 52 per cent). And 88 per cent believe that the E.U. urgently needs to implement policies to bridge the European competitiveness gap and raise productivity. However, the good news is that 72 per cent of corporate leaders do believe the E.U. is capable of achieving positive change, and looking ahead to 2030, they say the E.U. will remain one of the top global powers.

‘Overall, the mood is one of impatience with a strong call to action: Business is demanding that the E.U. take bold steps to promote economic, political, and social policies that directly address growth,” says Per-Ola Karlsson, senior partner at global management consultancy Booz & Company..”There should be no sacred cows. The question is, will European leaders have the courage to act?’

Even with a potential U.K. referendum looming on the political horizon, business leaders do not believe the E.U. will lose member countries. However, they clearly believe tough decisions need to be made.

The report analyses the responses of 1,500 executives both inside and outside of Europe who were asked about the economic, social, and political aspects of the European Union. The report will be presented today at the third annual State of the European Union conference in Brussels.

Corporate leaders strongly believe that the business sector will drive growth. Because of this, they say their voices must be heard by policymakers.