EY's attractiveness survey Europe 2014

EY's attractiveness surveys are widely recognized as a key source of insight on foreign direct investment (FDI). Examining the attractiveness of a particular region or country as an investment destination, the surveys are designed to help businesses to make investment decisions and governments to remove barriers to future growth. A two-step methodology analyzes both the reality and perception of FDI in the respective country or region. Findings are based on the views of representative panels of international and local opinion leaders and decision-makers.

In this year's European attractiveness survey, was included a special section on the impact of the prolonged economic crisis on Europe's FDI landscape. The results are astonishing. Europe's share in global FDI inflows has declined significantly and the continent has lost its longlasting leadership: from over 50% of the world's FDI inflow in 2002, Europe captured only 20% of all global investment in 2013.

Europe's economic map was redrawn during the crisis years. While some countries struggled to regain investor confidence, others took advantage of the crisis to improve their competitiveness, become stronger and become more attractive to FDI. Investment patterns also changed. For example, there was an increase in sales and marketing projects. This illustrates foreign investors' commitment to seek every sign of growth and chase every opportunity in a stagnant economy. Investment sizes were also substantially smaller than in pre-crisis years: average job creation from FDI projects declined 22% during the recession. However, 2013 appears to have been a turning point. The Eurozone's recession finally came to an end in the second quarter of the year. Most economies have begun to grow and consumer spending has increased.

As a result, businesses have begun to see growth and profits again, and boards are approving investment proposals. Europe's emergence from recession is, of course, reflected in this year's European attractiveness survey.

Please consult the survey here...