INSEAD and Booz & Company study is cautiously optimistic about the future of Europe

2,000 business leaders were surveyed on how the EU should move forward to ensure its place as a global player. The survey was launched as part of the inaugural The State of the European Union forum.

INSEAD, the leading international business school, and Booz & Company, a global management consultancy, today released the findings of ‘Revitalising the European Dream: A Corporate View’, a compendium of the viewpoints of some of Europe’s top-echelon business leaders.

Despite the recent economic and financial difficulties, 28% of respondents report that they are positive about the current situation in Europe. Even more encouraging, the majority (61%) say that they believe that by 2030, the EU will be a major global power.

Business leaders are convinced that the role of the EU is absolutely essential on such topics as monetary policy, security and budgetary policy. They feel that the influence of the EU will continue to grow moving towards 2030: current difficulties will be overcome, with the role of the EU being pivotal.

“It is important to note that these business leaders are able to take a longer-term view of the potential of Europe, despite the current environment,” said Per-Ola Karlsson, Managing Director of Booz & Company, Europe. “The study shows that people doing business in the EU believe that Europe is undergoing a fundamental shift”. In terms of competitive advantage, business leaders strongly agree that innovation, SME activity, budgetary discipline and exports are key to fostering high growth. Business leaders clearly favour EU leadership on monetary and budgetary issues and, while they believe that EU members should share a common social model, opinions diverge on the form such a model should take.

The overwhelming majority of respondents (97%) advocate increased collaboration between universities and companies to drive EU growth. More than 2/3 (78%) of respondents believe that education’s ability to meet business needs will improve by 2030. Overall, they are confident in the future competitiveness of education in Europe, which they feel could be strengthened even more through a common European education policy.

“Business schools have an increasingly important role to play in Europe as the region looks towards the future,” said INSEAD Dean Dipak C. Jain. “Policy-makers will need to know more about business and vice-versa. Business schools will have to go beyond their traditional role in order to fulfil the demands of tomorrow”.

Finally, business leaders urge the EU to develop a stronger common voice on security, diplomacy and trade and favour enhancing EU presence outside its borders. Going forward, they see opportunities to expand the leadership role of the EU on social issues, including education, unemployment and labour policies. With regard to expansion of the EU’s borders, business leaders feel that it is important to complete the integration of the Balkan states and then reassess any further expansion.

The findings of the study will be discussed over the course of a full-day conference on Wednesday, 29th June, at the inaugural The State of the European Union forum at the Egmont Palace in the presence of President of the European Council Herman Van Rompuy, former President of France Valéry Giscard d'Estaing, Polish Minister Adam Jasser, other policy makers, and executives of global companies.

The conference will focus on the survey results and give a platform for multinational companies, academia and policy-makers to share and debate their viewpoints around five themes:

• Economic Roundtable: “Re-energizing the European economy"
• Social Roundtable: “Reshaping the European social model”
• International Roundtable: “Redefining the European role in international affairs”
• Marketing: ”Re-marketing Europe”
• Vision and Aspirations of the Next Generation: “Renewing the Dream”