High energy costs and excessive regulations are affecting Europe’s ability to attract investment. Over 60% of companies consider regulations to be a major barrier, according to the Reform Barometer 2025, which includes, as every year, the results of a survey conducted among member organizations, including Concordia, directly reflecting the perceptions and priorities of companies across Europe.

Concordia, as a member of BusinessEurope (the largest business organization at European level), announces the launch of the 2025 edition of the Reform Barometer, the annual report that analyzes the competitiveness of the European Union and proposes clear reform directions for a stronger European economy.

Published annually by BusinessEurope, the Reform Barometer provides an overview of the EU’s economic performance compared to other regions of the world. The report analyses key indicators such as: business environment, investment, labour market, taxation, innovation, access to finance and financial stability. Complementing the European Commission’s European Semester process, BusinessEurope proposes its own recommendations from a business environment perspective.

Main conclusions of the analysis of the current European economic environment

• Slow economic growth and loss of EU competitiveness: While the US economy grew by 2.5% in 2024, the EU recorded only 1.1%.
• The incomplete single market continues to limit development – ​​intra-EU trade accounts for only 20% of GDP, compared to 70% in the US.
• EU productivity lags behind the US and China, amid a decline in foreign direct investment and high administrative costs.
• Taxation, active labour market policies, skills development and renewable energy are the main priority areas for reform in 2025.

One of the major challenges ahead will be to build a new, less rigid multiannual financial framework that, without major revenue adjustments, supports the ambitious objectives of competitiveness, green and digital transitions and defence.

What is seen at the grassroots level, among companies in Romania and other Member States

• Concerns about the deterioration of the European investment environment
• High expectations, but cautious optimism about the new mandate of the European Commission. At the same time, Member States are not implementing enough structural reforms.
• Overwhelming pessimism about the negative impact on the EU of the new US deregulation agenda.

Among the recommendations made by BusinessEurope are reducing administrative burdens and simplifying legislation, especially for SMEs, completing the Single Market, reorienting the EU budget towards strategic investments, and creating a favourable environment for innovation and sustainable economic growth.