The European Union (EU) takes the top spot as the world’s most globalised region according to the Swiss Institute of Technology’s 2019 ranking of 200 countries based on various economic, political and social factors. It is also the world’s 3^rd largest economic bloc.

A balanced political economy, mature financial, legal and R&D institutions, robust domestic and export market, strategic location and advanced infrastructure place Europe in a solid position for sustainable growth despite global risks in the 21st Century.

The region is leading the world in architecting the digital economy of the future. Free movement of talent, capital, goods and services between 27+ countries provides the underlying framework for frictionless business. Ongoing strategic investments in Industry 4.0, Digital Single Market and Start-up Ecosystem, and pioneering legislation such as General Data Protection Regulation (GDPR) and Digital Markets Act (DMA) provide strong protections to technology companies and consumers, and a level playing field for entities within its jurisdiction.

The EU consumer market is more than twice that of the United States in terms of population size and 2.6 times that of China in terms of purchasing power. EU consumers are trendsetters and early-adopters of technology, fashion, food, sustainability, health, ageing and wellness products. For example, 10 of the Top-15 global vegan foods markets are in Europe.

European B2B market is robust. Euro Area Purchasing Managers Index (PMI) ranked #1 in Aug’21 – the first region to make a comeback post-COVID.  Despite the ongoing war in Europe, Euro Area PMI in May’22 has kept pace with growth economies such as India. Industry 4.0 and digitization are big procurement themes for European private and public sector. Domestic talent shortages  in specialised skills and professions such as software development, IT, nursing and teaching present unique opportunities for overseas technology companies, human resource and IT service providers.   

EU is an attractive cross-Atlantic play for US investors and businesses and a strategic market for Asian investment, partnership and trade. Some key challenges non-EU companies must overcome in Europe include market fragmentation, language and cultural diversity, higher regulatory environment, specific business practices & standards, and domestic competition.

Getting Europe strategy right is key to global and digital businesses.