A call for smarter integration in the European Union

Business survey in four countries: a mix of optimism and frustration

Although there is much to be criticised about Brussels bureaucracy, family businesses in four major European countries take a fundamentally positive view of the EU as a market and investment location. They are waiting impatiently for the economic area to finally complete what it set out to achieve. Smarter regulation and smart integration could unleash powers beyond imagination.

Brussels, 16 September 2025. The European Union (EU) often underestimates the role of family businesses as the backbone and growth driver of the economy. However, the Foundation for Family Businesses, a sponsor of academic research since 2002, is drawing attention to the power that lies within these businesses. A survey of 2,400 companies in France, Italy, Spain and Germany, around 80 percent of which are family businesses, demonstrates what needs to be done in order to unleash this power.

In an economic climate characterised by major geopolitical challenges and the aftereffects of recent crises, the business leaders and executives surveyed still remain confident that the economy will recover, with a surprising degree of consensus across all countries.

Sixty-six percent of the business leaders and executives surveyed anticipate that their companies will be in a somewhat better or even much better position in five years’ time than they are today. Sixty percent consider their home market to be a good place to invest. And when they consider investing elsewhere, the first countries that come to mind are their EU neighbours – only then do they think of the US, China or Switzerland.

A graph is shown. The message of the graph is that 66 percent of the shareholders and top managers surveyed expect the state of their companies to be somewhat better or even much better in five years than it is today.
Majority expects improvements: Percentage of respondents saying the general state of their company will get better or worse in the next 5 years.
When investing abroad, companies from Germany, France, Italy, and Spain tend to invest first in neighboring EU countries. China and the US are less prioritized for investment.
Neighbouring EU countries are key investment destinations: Business leaders say where they would be primarily investing outside their home market.

Limited trust in EU institutions

However, this optimism comes with conditions, and the role of EU institutions is often viewed critically. Trust looks rather different. Seventy-six percent of those surveyed believe that the sheer volume of compliance requirements takes up resources that could otherwise be used for growth. Complicated and constantly changing rules fuel uncertainty. The most pressing problems for companies are the shortage of skilled workers and high, volatile energy prices.

Clearly, the EU must finally deliver on the four fundamental freedoms (goods, services, capital and people). Almost two-thirds of the companies surveyed state that they would gain significant opportunities from a deepening of the single market. At least one-third hope to become more resilient through better conditions for cross-border trade within the EU and beyond. Thirty-six percent wish for better access to skilled workers in order to increase their resilience.

Family businesses tend to be particularly resilient and to think in the long term – that is, in generations. However, if the potential successors to these businesses are to find the courage to take over, they must be provided with attractive and reliable conditions. The survey, conducted by Edelman Data & Intelligence, illustrates this for the four largest economies in the EU.

Given the current uncertain global situation and economic downturn, the deepening of the EU must finally gather pace so that the single market can be completed. Family businesses, the backbone of the European economy, have not yet completely lost their faith in the strength of this union. But they quite rightly expect more reasonable conditions for entrepreneurship.

Dr David Deißner, Managing Director of the Foundation for Family Businesses
The chart shows the challenges that pose the greatest threat to the competitiveness of companies in Germany, France, Italy, and Spain. The biggest challenges are the shortage of skilled workers and high and volatile energy prices.
Shortage of skilled workers is the main problem: Ranking of top threats to competitiveness over the next 5 years.
The graph shows the number of entrepreneurs who believe that deepening the common market within the EU would offer them great opportunities. Approximately two-thirds of the entrepreneurs surveyed share this opinion.
Deepeningof the Single Market holds economic potential: Percentage of respondents who agree.
The graph shows what entrepreneurs think of the work of the EU institutions. For the most part, entrepreneurs have not yet completely lost faith in the power of the EU.
EU’s economic policy over the last 5 years received mixed reviews: Percentage of respondents saying how EU institutions have performed in enhancing competitiveness.

Teaserbild © iStock

Date
16.9.2025, Brüssel

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