Europe's Foreign Investment Attractiveness Report 2025

This document is a report detailing the current state of foreign direct investment (FDI) attractiveness in Europe as of 2025. It outlines the significant decline in FDI, which has reached a nine-year low, with a total of 5,383 projects announced in 2024, marking a 5% decrease from the previous year. The report identifies key factors contributing to this decline, including geopolitical tensions, macroeconomic conditions, and trade barriers. It also highlights the challenges faced by Europe, such as high energy prices and competition from the US and China. Despite these challenges, the report presents reasons for optimism, noting strong investment flows in Southern and Eastern Europe and opportunities in high-growth sectors like artificial intelligence and energy. The document emphasizes the need for collaboration between policymakers and business leaders to enhance Europe's attractiveness and outlines 12 recommendations aimed at improving the investment climate. These recommendations focus on simplification of regulations, strategic investments, and effective communication of Europe's strengths to potential investors.