Eurochambres:

Eurochambres recent Economic Survey (EES) highlights that while there have been improvements in Europe's economy, such as lower inflation, increased consumer confidence, and progress in securing supply chains, the ongoing war in Ukraine still affects economic performance. 

Although expectations for the year ahead are slightly less negative compared to the previous survey, Europe’s growth is still limited by several issues that need to be addressed by EU and national policymakers. 

Business confidence and export sales are expected to improve slightly, but overall they remain negative. Other areas, like employment and investment, are weak due to tight labour markets and rising employment costs, especially related to social security. Although national sales projections are positive, they are not expected to significantly surpass previous years, leading to a cautious outlook. 

Entrepreneurs face several challenges in 2025, with high labour costs and a shortage of skilled workers being the main issues. The growing regulatory burden is also a concern, as businesses must deal with new laws that could affect them. Furthermore, while Europe is pushing for a digital and green transition, many business owners are reluctant to invest in new technologies and energy efficiency, as new regulations further reduce the profitability of smaller businesses in particular.

The report has a number of policy recommendations and they can be read in detail here:

Eurochambres is the association of European chambers of commerce and industry – represents over 20 million businesses via its network of national chambers across Europe. Eurochambres is the leading voice for the broad business community at EU level, building on chambers’ strong connections with the grass roots economy and their hands-on support to entrepreneurs. Chambers’ member businesses – of which around 93% are SMEs - collectively employ over 120 million people.