Project

Investment Report 2024/2025 -Chapter 1: Accelerating transformative investment

European Investment Bank

DOI: 10.26303/rdts-t686

What is it about?

Chapter 1 explores the current state of investment in Europe, analysing macroeconomic trends, structural challenges and financial strategies that could be used to accelerate transformative investment. It assesses how the European economy has performed since the COVID-19 pandemic, looking at factors such as fluctuating energy prices, tighter monetary policy and global uncertainty. The analysis also examines key barriers to investment, including high financing costs and regulatory constraints, while emphasising the need to improve firms’ productivity, use of digital technologies and efforts to align their business with the green transition and the demands of climate change. It explores how Europe can leverage its substantial savings and financial resources to fund innovation and growth, and homing in on how the European Union can improve the allocation of capital, labour participation and business opportunities.

Why is it important?

This chapter is crucial for understanding how Europe can overcome stagnating investment and drive long-term economic growth. It identifies structural challenges – such as low productivity growth, labour shortages and barriers to digital transformation – that must be addressed to maintain competitiveness. Additionally, it highlights the importance of mobilising financial resources to support the green and digital transitions. By outlining strategies to improve market integration, enhance the efficiency of the financial system and align public policies with investment priorities, the chapter provides a roadmap for fostering innovation, sustainability, and resilience.

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Who is involved?