Economy

#InvestWeek: Global investors set to increase funds to Europe

Published

9 years ago

November 20, 2017

The majority of global investors polled in a new survey for the launch of Invest Week believe Europe has become a more attractive investment destination and expect investment to increase.

For the Global Investment Decision Makers Survey, commissioned by Invest Europe, Ipsos MORI surveyed 360 senior-level corporate and financial investment decision-makers at companies from the US, China, Germany, the UK and France. It found that more than three-quarters of investors in China and 71% of their US peers believe Europe is a more attractive investment destination than it was five years ago. Nine out of ten respondents from China believe investors will increase investment in Europe over the next five years and 74% from the US agree.

Lower taxes should be a priority for policymakers if Europe is to attract more investment according to 43% of investors in France, 38% in the US and 37% in China. The need for better investment incentives was ranked highly by 37% of respondents from the US and China, and 26% in Germany.

“There is clearly robust appetite among global investors for European investment opportunities but policymakers need to consider what more they can do to attract capital,” said Michael Collins, CEO, Invest Europe. “These findings underpin the importance of bringing together European policymakers, investors and entrepreneurs at forums such as Invest Week to discuss how best to harness this interest.”

When asked to compare Europe, the US and China as investment destinations, 74% of respondents listed Europe as the strongest performer on its commitment to sustainability and the environment. Almost three-quarters of respondents asserted that sustainability is an important issue in their investment decision making, indicating strong potential for drawing more capital into Europe. Eurozone stability, improved economic growth and higher returns on investment were cited as factors in Europe’s increased attractiveness. This month the European Commission forecast the highest Eurozone economic growth rate in ten years with real GDP growth forecast at 2.2%.

Europe’s strength in sustainability is reflected in the industries in which it is seen as a global leader: 55% of respondents rate the region ahead on energy and the environment, while 44% said Europe leads in finance and insurance. Almost two thirds of investors in China highly regard Europe’s world-leading biotech and healthcare sector.

Europe makes progress on capital markets and innovation

Closer integration of Europe's capital markets has been a draw for almost half of investors in China and two out of five in the US.
While two out of three investors rate Europe as above average for the efficiency of its capital markets, the US leads Europe in this area, underlining the need for the successful delivery of the EU’s Capital Markets Union initiative.
Access to global markets is an area where Europe is above average. compared to other investment destinations according to 68% of investors
Two out of five respondents picked increased innovation in Europe as a reason for its growing appeal over the last five years, while 36% cited the improved start-up ecosystem. Nevertheless, the US still leads on innovation over Europe and China, reflecting the country’s strength in nurturing tech start-ups.
Over a fifth of US respondents would like policymakers to prioritise increased investment in innovation to make Europe more attractive as an investment destination, while four out of ten Chinese investors say closer integration of the EU single market for goods and services could increase Europe’s appeal in future.

International investment appetite undimmed by Brexit

With the UK set to leave the EU on 29 March 2019, 58% of respondents from China say they are more likely to invest in the UK over the next five years as a result of Brexit and 47% more likely to invest in the EU. The majority of US respondents envisaged no change to their investment strategies for the UK or the EU as result of Brexit. However, 55% of investors based in Germany and 52% from France say they are less likely to invest in the UK because of Brexit.

93% of respondents in China and 77% from the US agree that EU policymakers are serious about appealing to international investors. French, German and British investors were less positive, with only 43% responding positively from Germany.

Invest Week, spearheaded by Invest Europe, is a week-long programme of events starting today (20 November) in Brussels, discussing innovation and sustainability in European investment. Invest Europe is the association representing European private equity and venture capital, and their global investors. The full report is free to download from its website, investeurope.eu.

About the Ipsos MORI Global Investment Decision Makers Survey

Respondents were surveyed online between 8 September and 17 October 2017 using panels of business professionals. All respondents were screened to ensure that they are involved in investment decision making in their organization and that they have knowledge of Europe as an investment destination. The following number of responses were achieved; Total 360, China 81, France 60, Germany 74, UK 54, USA 91. All markets have been weighted to an equal value of 75 completes in the total data.

About Invest Europe

Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors.

Our members take a long-term approach to investing in privately held companies, from start-ups to established firms. They inject not only capital but dynamism, innovation and expertise. This commitment helps deliver strong and sustainable growth, resulting in healthy returns for Europe’s leading pension funds and insurers, to the benefit of the millions of European citizens who depend on them.

Invest Europe aims to make a constructive contribution to policy affecting private capital investment in Europe. We provide information to the public on our members’ role in the economy. Our research provides the most authoritative source of data on trends and developments in our industry.

Invest Europe is the guardian of the industry’s professional standards, demanding accountability, good governance and transparency from our members.

Invest Europe is a non-profit organization with 25 employees in Brussels, Belgium.

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