While much of the global economic conversation has centered on the rapid expansion of the US and China, a quieter, more structural transformation is taking place across Europe. Far from being side lined, the continent is beginning to leverage its foundational strengths to chart a new course for growth. According to the latest Roland Berger Europe Future Readiness Index, the data points to a potential “inflection point”. After years of navigating headwinds, five out of six core competitiveness dimensions including human capital, sustainability, and resilience have now moved above their long-term averages for the first time in years.
The Power of the Foundation: Scale and Specialization
Europe remains a formidable global force, operating as the world’s second-largest consumer market with internal demand valued at approximately €22 trillion, comfortably ahead of China’s €16 trillion. This scale, combined with a highly specialized industrial base, provides a level of stability and potential that is often underestimated.
For corporate treasurers and finance directors, the report highlights three critical competitive advantages:
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The STEM Advantage: Europe produces 25.1% of the world’s STEM graduates, outpacing the US (21.8%) and creating a massive talent pool for high-tech industries.
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Manufacturing Depth: With manufacturing accounting for 14% of its GDP, significantly higher than the 10% seen in the US. Europe possesses the physical infrastructure necessary for the next wave of global reindustrialization.
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Industrial Data Leadership: While consumer tech is dominated elsewhere, Europe holds a unique edge in “micro-innovation”. By utilizing the trillions’ worth of proprietary, high-quality industrial data generated by its manufacturing core, the continent is uniquely positioned to lead in B2B AI applications.
Pockets of Outperformance
The index sheds light on several “lighthouse” nations that are currently setting the pace for the region:
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Poland: A standout for resilience, with projected expansion of 3.3% in 2025 fueled by a diversified industrial sector and robust internal market.
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Spain: Emerging as a major growth driver, expanding by 3.2% in 2024, faster than any other developed nation through successful diversification into technology and renewable energy.
- Switzerland: Continues to set the global standard for innovation and precision, maintaining a per-capita GDP nearly double that of several neighbouring major economies.
The Path Forward: Mobilizing for Growth
To sustain this momentum, Roland Berger identifies four key levers that will determine Europe’s long-term trajectory. For the treasury community, these represent the strategic shifts that will define the investment landscape over the coming years:
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Refining Regulation: Moving toward a simpler, more targeted regulatory environment to shorten approval cycles and restore the institutional pillar.
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Unlocking Private Capital: The completion of the Capital Markets Union remains essential to provide scale-ups with easier access to growth capital and prevent talent from migrating abroad.
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Harnessing Industrial AI: Turning vast amounts of proprietary industrial data into a structured asset to drive the next generation of productivity and automation.
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Strengthening Financial Independence: Building a more independent financial system, including progress on the digital euro to support market integration and the euro’s role as a global reserve currency.
The Bottom Line
The Europe Future Readiness Index suggests a continent moving toward a more decisive and ambitious mindset. With human capital and industrial resilience on the rise, the focus now shifts to execution. For finance leaders, this indicates a stabilizing environment where the “solid foundations” of the European economy are finally being mobilized for a meaningful comeback.
Read the full report here.
