“Europe has been worrying about slowing growth since the start of this century,” Mario Draghi said in 2024. “Various strategies to raise rates have come and gone, but the trend has remained unchanged.”
There is a tendency for gloom to descend when thinking about Europe’s economic and business prospects. In comparison with America, the Gulf and Asia, the mature markets of the EU and the rest of the continent have languished. Since the financial crisis, GDP growth in the euro-area has averaged 0.9% a year. In the U.S., it is above 2%.
Being European, overdoing the downsides comes naturally. We are a broadly skeptical and conservative bunch, not overly impressed by flamboyant displays of confidence.
Admittedly the continent has labored as the AI hyper-scalers of America and China have produced products (and valuations) that make the eyes pop. Progress towards a European capital markets union is lumpy. The effects of the U.K. leaving the EU are still being felt. The EU’s Digital Markets Act has been criticized for being both anti-consumer and anti-growth.
There are, though, plenty of bright spots. On September 16, we will reveal our annual Fortune 500 Europe, the list of the 500 largest companies across the continent by revenue (here’s a link to last year’s list). These are the powerhouses of the European economy, led last year by Volkswagen, Shell and Glencore. The 2026 index will be a treasure trove of statistics on profits, revenues and growth—with many lessons from the successes of those listed.
On the same day, C-suite leaders from across Europe and the Middle East will be gathering in London for Fortune CEO Forum to talk about growth and share successes and best practices. Leaders from Anthropic and OpenAI will be in the room with the CEOs of Ferrari and Volvo Cars U.K. The U.K. chairman of energy giant EDF will sit alongside board members from NatWest and the in-country CEO of Société Générale. Defense sector policymakers will discuss infrastructure investment with the likes of Honeywell and Tech Mahindra. Entrepreneurs from banking, AI delivery and telecoms will talk about future opportunities. From Microsoft to Shell, C-suite executives representing nearly $2trn of wealth will be in the room.
On September 16 C-suite leaders from across Europe and the Middle East will be gathering in London for Fortune CEO Forum to talk about growth and share successes and best practices.
Alongside the data from the Fortune 500 index, there are other reasons for optimism. Europe’s Innovation Scorecard, a test of research and investment trends compiled by the European Commission, revealed that innovation performance has increased by 11.6 percentage points since 2019. The U.K., Europe’s second-largest economy, sits happily above the EU average by more than 30 percentage points. “Europe continues to perform well,” the most recent scorecard said.
The continent boasts some of the greatest universities in the world, is an AI-intellectual powerhouse, has booming financial centers of which many are rightly envious, best-in-class manufacturing from cars to windmills and leads the way on energy sustainability research and non-fossil fuel production. Global leaders flock to Europe for its unique position, geographically and politically, between China, the rest of Asia, the Gulf, and America. Education and healthcare systems are in the top tier. The U.K. wants to see closer co-operation with the rest of the EU.
In a research note at the end of July, Goldman Sachs said that Europe’s economic growth had been “more resilient than expected’ given the energy price shock which followed the U.S. and Israeli attacks on Iran and the closure of the Strait of Hormuz.
“We see several reasons for this resilience,” the note said, “The economy’s energy dependence has declined. Fiscal policy supports growth [with] rising defense spending across Europe. Real household income growth remains robust, and labor markets have remained resilient despite sub-potential growth, with the unemployment rate at an all-time low.”
As a continent keen on saving, consumer confidence remains positive despite stubbornly high inflation. Most families are comfortably liquid and spending is continuing to rise. Incomes are up without the deleterious effects on wealth equality seen in the U.S.
“We estimate that broad financial conditions—including bank lending conditions and the European Central Bank’s policy stance—point to a positive impulse to growth,” the bank said.
Business leaders want to turn that impulse into a trend and know that collaboration across the continent and globally is key. Policy makers will also need to play their part.
“We must take a new stance towards cooperation,” Draghi said. “In removing obstacles, harmonizing rules and coordinating policies, our confidence that we will succeed in moving forward should be strong.” The plan is clear. Now it is time for the execution phase.
For the latest coverage and updates from Fortune CEO Forum, as well as insights into the companies on our list, visit this page.
