19 October 2021 – In spite of today’s incremental environmental, sanitary and migratory crisis, Europe holds its rank as top-tier destination for businesses and investors, according to the 2021 Competitiveness Report produced by Eight International, an organization of independent transaction advisors. The research further indicates that amidst today’s global instability, assessing economies according to traditional financial models falls short of providing insight into their fitness and resilience. Also, Europe, as the most integrated and globalized actor on the international scene, should be considered as a collection of complementary “regions” who can draw singular strength from increased collaboration.
Pascal Raidron, President of Eight Advisory and President of Eight International said: “As individual actors, European countries are ill-equipped to become global leaders. Every time a European country or region profiles itself in opposition to its neighbors, they miss the opportunity of establishing themselves on the world market.
Only those who can allow themselves to see Europe as a single economy rather than a sum of countries, will see a global player who can truly compete with the other big powers of this world.”
Alexis Karklins-Marchay, co-author of the report, Deputy Managing Partner at Eight Advisory and General Secretary at Eight International said: “If the health crisis has taught us anything, it is that standard economic and business models no longer suffice to measure national resilience. Social security, political efficiency, health safety, sustainability, innovation and data protection are just some of the factors that will determine an economic actor’s fate on the international markets.”
Key take-aways of the report:
The Eight Competitiveness Report 2021 contains comprehensive insight and understanding of the performance of eleven countries in detail and over time. This year they comprise the European countries of France, the UK, Germany, Switzerland, Belgium, the Netherlands, Italy, Spain, Poland as well as the strategically significant economies of Russia and India.
France – home of global companies
As in previous editions, the Competitiveness Report 2021 presents France’s position in 25 competitiveness-related rankings and shows its evolution over the past few years. While France’s position has improved in some indicators, it still lags behind several countries that are comparable to France.
Europe as the next big power
Were Europe a country, it could rival with the likes of China and the United States. Europe is the second economy in the world, comes out first in the ranking of universities and is the third biggest supplier of companies to the Fortune Global 500. Its ability to work in unison will be the determining factor in its ability to recover from the pandemic, harness climate change, and navigate upcoming geopolitical shifts. During these crucial times, Europe must step up and take on its responsibility as the world’s next big power.
Global competitiveness is not another term for cheap labor or low taxes. It’s a unique blend of individual freedoms and collective decision-making, of entrepreneurship and social protection. Relying on economic and financial indicators alone no longer suffices to evaluate national economic performance and business potential.
Different is beautiful
Within Europe we look at different economic models – Benelux, British Isles, Viségrad, Nordics, Med7 as well as DACH (Germany, Austria and Switzerland). Not a single economic model comes on top in all rankings. DACH is a very advanced and innovative region. The British Isles have a high quality of life and the Nordics score well on political and social stability. The conclusion is clear: European societal models are complementary and every European region has its own specificities – no differently than countries such as China or the United States. Europe must find ways of embracing these differences and turning them into an asset.
Today’s uncertain global economic landscape asks that analysis of economic resilience and business performance be aggregated into a multifactor system combining business environment, political and social stability, education and quality of life. Eight International’s report is unique in that it uses 25 authoritative reports to do this.
“The report which is now in its 5th fully international edition was first published in 2013. It continues to gain traction in senior Government and policymaking circles. It functions as an early screening of expected economic policy challenges for European countries as well as a comprehensive analysis of the international economic playing field.” Alexis Karklins-Marchay, co-author of the report, Deputy Managing Partner at Eight Advisory and General Secretary at Eight International