A call to action from 17 senior business leaders: The upcoming hearings of the Commissioners-designate provide a double opportunity. For candidates, they have a chance to outline how they will translate the Commission priorities into reality. For Members of the European Parliament, they can ensure that boosting the EU economy and its competitiveness stands at the top of the political agenda.

European operations are a vital part of the global footprint of American companies and an integral part of their supply chains. Europe is the first destination for US foreign direct investment (FDI). The US and Europe remain each other’s most important markets and geo-economic base. No two other regions in the world are as deeply integrated as the US and Europe. However, for many of our companies, the case for new investments in Europe is becoming increasingly difficult to make. FDI into Europe fell by 4% in 2023, marking the first downturn since the pandemic. In a context of global uncertainty, regulatory complexity, protectionist trends and sluggish growth have created a difficult environment for business and divert investment away from Europe.

The European Council’s EU Strategic Agenda, the Political Guidelines set by President-elect von der Leyen and the Draghi Report are all encouraging signals that competitiveness has risen as a key concern for policymakers. Acknowledging the issue is an important step. However, we strongly urge EU institutions to take swift, concrete actions to enhance Europe’s appeal to global investors. Failure to do so risks undermining Europe’s position as a global economic leader, jeopardizing its growth and prosperity. 

The hearings of the Commissioners-designate represent an opportunity to translate ambitions into actionable policies. The Commissioners-designate should present concrete strategies to embed competitiveness within their respective portfolios. Likewise, Members of the European Parliament should focus their questions on how these strategies will be implemented, ensuring competitiveness becomes a cornerstone of the EU’s policy agenda. 

We would like to highlight several challenges regarding business and investment in Europe that the new Commissioners-designate and the European Parliament should address:  

1. Regulatory complexity and burden 

The increasing volume and complexity of regulations at both the EU and Member State levels poses significant challenges. The lack of harmonisation of EU policies and between EU and national legislation creates compliance difficulties and diverts resources from innovation and investment. A more predictable, streamlined regulatory process is necessary.  

2. Approach to the green and clean transition 

American companies in Europe are committed to supporting the EU’s climate objectives through investments in green technologies. However, the regulatory approach of the last mandate often restricted technological innovation and lacked the necessary coordination with other key policies and support for industries critical to the green transition. A more inclusive and flexible approach that accommodates a broader range of technologies is essential for Europe to achieve its climate goals. 

3. Digital transition and skills shortage 

Europe must invest in digital infrastructure and workforce skills to remain competitive. Emerging technologies like AI, quantum computing and 5G/6G require a digitally skilled workforce. Collaboration between industry, academia and governments is crucial to close the skills gap and foster upskilling and reskilling initiatives.  

4. Access to funding and investment incentives 

The complexity and fragmentation of European funding mechanisms are major barriers to investment. Europe must simplify its funding processes and consider adopting both long-term incentives and positive framework conditions. 

5. The rise of protectionism 

Protectionist measures within Europe risk reducing the continent’s attractiveness to global investors. Strategic autonomy should not come at the expense of openness. The EU should continue to work with like-minded global partners, including the United States, to foster resilience in global supply chains, ensure economic security and strengthen the rules-based international trading system. 

The EU should consider a systematic assessment of competitiveness across initiatives, an idea that President-elect von der Leyen has outlined in the Mission Letters to Commissioners-designate. This process would evaluate whether proposals make the EU more open and attractive to trade and investment, strengthen relationships with like-minded trade partners, foster innovation and its application in industry and reduce costs and regulatory burdens for businesses and consumers. These and other considerations form the basis of AmCham EU’s 10-point ‘Competitiveness Scorecard’ – a tool designed to assess and communicate the competitiveness impact of regulatory proposals. The Scorecard operates as a peer-reviewed checklist that provides a clearer, more transparent evaluation mechanism, complementing the existing impact assessment process.

We stand ready to work with European institutions and Member States to ensure that the EU remains an attractive destination for investment, innovation and growth while unlocking the full potential of the transatlantic partnership in the years to come. Europe’s prosperity depends on it. The time to take action is now. 

Signatories  

1. Andrew Bennett, Senior Vice President, Country Governance & Emerging Markets, 3M  

2. Olivier Marquette, President, Europe, AES Corporation  

3. Melodie Nakhle, Managing Director, Europe, Southern Africa, Australia and New Zealand, Amway 

4. Antoine Janssens, General Manager, EMEA, Chevron Philips Chemicals 

5. Olivier Tuszik, President, EMEA, Cisco 

6. Adrian Studer, Executive Vice President & Market Head Ecolab, Europe, Ecolab 

7. Philippe Ducom, President, Europe, ExxonMobil  

8. Chris Delaney, President, EMEA, Goodyear 

9. Bernhard Fauser, Senior Vice-President, Managing Director, Central and Eastern Europe Market, HP Inc. 

10. Biljana Weber, Senior Vice-President and Managing Director, North-Western Europe, HPE 

11. Ana Paula Assis, Chair and General Manager, EMEA, IBM 

12. Richard Lek, Vice-President and General Manager Continental Europe, Johnson Controls International 

13. Manuel Kohnstamm, Senior Vice-President and Chief Corporate Affairs Officer, Liberty Global 

14. Deri Watkins, Regional President, Mars Petcare Europe, Mars Inc. 

15. Riad Gydien, Executive Vice President & Chief Sales Officer, SAS

16. Daniel Carrera, President, EMEAI, UPS 

17. Alessandro Centrone, President, EMEA, Steelcase 

The signatories are members of the Executive Council of the American Chamber of Commerce to the EU (AmCham EU). A forum for senior executives responsible for the European operations of some of AmCham EU’s member companies, the mission of the Executive Council is to strive for the continuous improvement of European global competitiveness, through targeted dialogue at the highest levels between its members and senior policymakers of the EU institutions, Member States and international organisations.  

AmCham EU speaks for American companies committed to Europe on trade, investment and competitiveness issues. It aims to ensure a growth-orientated business and investment climate in Europe. AmCham EU facilitates the resolution of transatlantic issues that impact business and plays a role in creating better understanding of EU and US positions on business matters. Aggregate US investment in Europe totalled more than €3.7 trillion in 2022, directly supports more than 4.9 million jobs in Europe, and generates billions of euros annually in income, trade and research and development.