Europe´s Investment Paradox

by Jörgen Eriksson on May 19, 2015

The Eurozone has recently grown faster than the United States, but despite improved economic conditions there is little sign of companies increasing investment. As investments are necessary in times of fierce globalisation, Europe may fall further behind in competitiveness.

In general, as can be seen in the chart below, CFO´s in European companies are optimistic about the future.

Screenshot 2015-05-30 18.21.57

However, this does not reflect in investment decisions, as the chart below of the CFO´s priority over the next 12 months shows. Most CFs are risk averse and will focus on cost control and cost cutting.

Screenshot 2015-05-30 18.24.53

In the video below from Financial Times, Sarah Gordon, FT’s business editor, asks Deloitte’s Chris Gentle why executives are still being cautious.

Europe´s investment paradox

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