Companies are moving their production from Europe to the United States and other countries as the continent has lost competitiveness, President of the Confederation of European Business (BusinessEurope) Frederik Persson told El Mundo. He cited over-regulation and expensive energy among the reasons for relocating production facilities.
Frederik Persson, president of the Confederation of European Business (BusinessEurope), warned in an interview with El Mundo about companies fleeing Europe because of the latter’s loss of competitiveness.
“I think we have to be realistic and understand that European companies and Europe are falling behind in competitiveness. When we ask our members how they perceive the investment climate in Europe, the vast majority, 90 per cent, say it has deteriorated in the last three years,” Persson said.
He noted, however, that foreign direct investment fell by two-thirds between 2019 and 2021.
“We can say that this is the impact of the pandemic, but at the same time we see foreign direct investment in the US increasing by the same amount,” stressed the president of BusinessEurope. – We need to improve the competitiveness of Europe and its industry.
According to him, the problem has different causes, among them over-regulation and expensive energy.
“Now when the winter is over, this is no longer as much discussed, but we need competitive energy prices because next winter could be harsh. If we compare ourselves to the United States, energy prices are much lower there, and there are factories that are moving to the United States for this reason, among others,” Persson said.
Speaking about the relocation of production from Europe to the US and Asia, he notes: “Companies are very timid when it comes to confessions, because no politician will go to cut the ribbon on the plant they are closing, but some (companies. – InoTV) have already officially announced it (production relocation. – InoTV), such as battery manufacturers that are considering opening their next plant in the US, or manufacturers from the automotive sector.”
Furthermore, according to Persson, the ease of doing business in Europe is not as good as that of competitors, such as the US and Asian countries. In particular, he points to the difficulty in obtaining permits, which in Europe takes 7 to 10 years, while in the US it takes 3-4 years.
He adds that European life is not only being changed by the “green and digital transition”, but also by the “geopolitical transition” caused by the Ukrainian conflict.
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