Growing optimism among Europe’s CEOs, and an acknowledgement of digital transformation’s critical role in business strategy, are among the findings from the European cut of EY’s CEO Outlook Survey
EY recently launched the European cut of its CEO Outlook Survey, which reveals a notable shift in CEO sentiment across the region. Contrary to prevailing market concerns, the survey highlights a surge in optimism among European CEOs regarding economic growth in 2025 and a strong focus on AI investment and M&A activity.
The survey itself provides key insights on CEO’s confidence levels and strategic priorities, along with their outlook for the year ahead as they navigate challenge.
Key highlights from the European cut of the EY CEO Outlook Survey include:
- 81% of European CEOs are optimistic about global growth in the next 12 months(up from 66% in the last quarter), showing strong confidence for the future.
- 85% believe AI adoption and upskilling the workforce will define industry leaders, highlighting the importance of AI for business success.
- 77% are optimistic about local economic growth,up 64% last quarter and slightly above the 75% global average, reflecting increased confidence in regional markets.
- 75% plan to invest in emerging technologies,while 72% are focused on enhancing their existing technology stack, reinforcing the critical role of digital transformation in business strategy.
- 61% expect an increase in megadeals (US$10bn+),with the UK leading in optimism (63%), while Italy andGermany remain the least positive about large-scale transactions.
Confidence and pragmatic regulation
Julie Linn Teigland, EY’s EMEIA Area Managing Partner emphasised the role of confidence in driving decision-making and the need for policymakers to support business growth with pragmatic regulation, stating:
“European businesses face a challenging operating environment: geo-political tensions, trading tariffs, a myriad of regulations and rapidly evolving technology has combined to sew uncertainty into domestic and international markets.
“Despite this, and contrary to recent headlines, optimism amongst CEOs in Europe is growing. According to our latest CEO Outlook Survey, the vast majority of European CEOs have increased confidence in economic growth prospects in 2025 – both globally and locally.
“Confidence matters. It drives decision-making. Three-quarters of European CEOs are planning investment in emerging technologies, particularly AI; 55% will pursue a merger or acquisition in the next 12 months, a sharp increase from several months ago.
“For Europe to be competitive globally, policymakers need to meet businesses halfway and fuel their confidence. This means an approach on regulation of as ‘little as possible and as much as necessary’, steadfast focus on innovation and growing AI investments as other parts of the world sprint ahead in the AI race.”