European CEOs downbeat on Europe, favour US investment, survey shows

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BRUSSELS, Dec 7 (Reuters) – Chief executives of large European companies are downbeat on Europe’s economic prospects, albeit less so than six months ago, and have become more bullish about investing in the U.S. than at home, according to a survey published on Sunday.

The survey of the European Round Table for Industry, which comprises about 60 CEOs and chairs of companies such as ASML, BASF and Vodafone, showed respondents found that the business case for investing in Europe was weakening further and that the European Union was too slow to implement required reforms.

Some 38% said they would invest less than they had planned six months earlier in Europe or had put decisions on hold, while just 8% said their European investments would increase. By contrast, 45% said they intended to invest more in the United States.

The business leaders want to see the reforms recommended in influential reports last year by former European Central Bank chief Mario Draghi and Enrico Letta, both previously Italian prime ministers. Both said the EU needed urgent action to boost its competitiveness and keep pace with the U.S. and China.

However, a large majority of survey respondents said they had seen little or no positive impact from EU initiatives in critical areas of regulatory simplification, single market completion, competition policy and energy affordability.

The survey was published just before a meeting on Monday of ministers from the 27-nation EU to discuss competitiveness issues such as simplification and internal barriers within the EU single market. 

(Reporting by Philip BlenkinsopEditing by Mark Potter)