EIB Survey Reveals European Firms’ Resilience Amid Green and Digital Shifts

The 2025 EIBIS concludes that Europe’s economic future will depend on its ability to combine policy coherence, technological adoption, and investment agility.

European businesses are maintaining a strong commitment to sustainability and innovation despite rising global uncertainty, according to the 2025 European Investment Bank Investment Survey (EIBIS) released in Washington, D.C., during the annual meetings of the International Monetary Fund (IMF) and World Bank Group.

The survey — which polled over 12,000 companies across the European Union and more than 800 in the United States between April and July 2025 — paints a picture of resilience, adaptability, and determination among European firms navigating economic, political, and trade challenges.

European Firms Stay the Course on Green and Digital Transitions

The EIBIS 2025 report reveals that an overwhelming 92% of EU companies are investing directly in measures to cut greenhouse gas emissions. These investments underscore the private sector’s growing alignment with Europe’s Green Deal objectives and the bloc’s long-term strategy to achieve climate neutrality by 2050.

At the same time, 86% of EU firms continue to invest overall, even amid global uncertainty. While the pace of new investments has slowed compared to previous years due to inflationary pressures, rising energy costs, and geopolitical instability, companies remain focused on digitalisation and sustainable transformation.

“While uncertainty weighs heavily on firms, they are so far weathering the shock,” said Debora Revoltella, Chief Economist of the EIB. “There is a clear commitment to invest in digitalisation and green initiatives, which are crucial for maintaining competitiveness in the evolving global market. The focus on the green transition is evident, with a considerable portion of investment directed towards sustainable practices.”

Generative AI Adoption Growing Across Europe

A key highlight of the 2025 survey is the rapid rise in the adoption of Artificial Intelligence (AI) across European companies. The report finds that 37% of EU firms are now deploying generative AI — roughly matching the 36% adoption rate in the United States.

While Europe’s AI integration is gaining momentum, the report notes that European firms are using AI in a narrower range of applications compared to their US counterparts. About 81% of US firms that employ AI use it in more than two business functions, compared to only 55% of European companies.

The main gap lies in the application of AI for customer service, marketing, internal process automation, and human resources management. Nonetheless, the EIBIS identifies significant potential for European businesses to scale AI adoption across multiple operations, which could further enhance productivity, innovation, and competitiveness.

Persistent Investment Barriers: Skills, Energy, and Uncertainty

Despite encouraging progress, European firms continue to face several critical obstacles. The 2025 EIBIS identifies uncertainty (83%), shortages of skilled labour (79%), and high energy costs (75%) as the top barriers to investment.

Labour shortages remain a structural issue across multiple industries — particularly in advanced manufacturing, renewable energy, digital technologies, and green construction — highlighting the need for enhanced vocational training, upskilling, and education policies.

Meanwhile, persistent energy price volatility reinforces the urgency of accelerating renewable energy deployment and improving energy efficiency. The report suggests that the energy transition is not only vital for meeting climate goals but also for safeguarding Europe’s industrial competitiveness in the global market.

Investment Outlook: Slow Expansion but Continued Modernisation

Looking ahead, the EIB survey indicates that EU companies remain cautious about capacity expansion. Only 26% of European firms plan to expand their operations in the next three years, compared to 37% of US firms expressing similar intentions.

Most European investment is now focused on replacing or upgrading existing assets rather than expanding production capacity — a reflection of the uncertain geopolitical environment and the need to improve operational resilience.

Policy Support and Finance Conditions

The survey finds that the share of finance-constrained firms in Europe has slightly decreased compared to recent years, signalling that monetary and fiscal interventions have helped stabilise access to credit. Around 16% of European firms currently benefit from policy support — mainly in the form of grants, guarantees, or low-interest financing.

Importantly, 61% of this policy support is targeted toward specific objectives, with 41% dedicated to the green transition and 29% promoting innovation. This targeted approach reflects the European Union’s prioritisation of strategic investments that drive sustainability and technological advancement.

Trade Tensions and Market Fragmentation

The EIBIS also sheds light on the growing concern among businesses regarding trade and customs barriers. Around 77% of US firms see tariffs as a major obstacle, compared with 48% of EU companies.

European firms, however, continue to express concern about internal market fragmentation within the EU itself. 62% of businesses perceive the internal market as still fragmented, and bureaucratic costs are estimated to consume roughly 2% of turnover for small and medium-sized enterprises (SMEs).

Reducing administrative burdens and further harmonising regulations across EU member states could, according to the survey, unlock significant investment potential — boosting innovation and cross-border business growth.

The Path Forward: Integration and Innovation

The 2025 EIBIS concludes that Europe’s economic future will depend on its ability to combine policy coherence, technological adoption, and investment agility. By investing in AI, renewable energy, and workforce skills, European firms are positioning themselves to thrive in an increasingly complex global economy.

“Europe’s resilience rests on its willingness to adapt,” Revoltella noted. “The digital and green transitions are not just challenges — they are opportunities to reimagine competitiveness and sustainability for the decades ahead.”

With strong public-private cooperation and continued policy alignment, the European business landscape is poised to navigate uncertainty — turning its commitment to sustainability, innovation, and inclusion into lasting economic strength.