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

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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