BUSINESSEUROPE Reform Barometer 2026 – 18 months after Draghi: from diagnosis to delivery

Eighteen months after the publication of the report by Mario Draghi, the diagnosis of Europe's challenges is widely shared. The question is no longer what needs to be done, but whether Europe is delivering.

Since the beginning of the new legislative cycle, the environment for European companies has changed dramatically. Geopolitical tensions are rising, security threats are intensifying, and global competition is accelerating, particularly in advanced and digital technologies. At the same time, the productivity gap with the United States continues to widen, energy costs remain structurally higher than for our main competitors, and volatility weighs on long-term investment decisions.

European businesses recognise the renewed political commitment to boost competitiveness, strengthen security and reduce regulatory burden. The direction of travel set out in the reports by Enrico Letta and Mario Draghi is the right one. But companies on the ground do not yet feel sufficient relief. Complex legislation, fragmentation within the Single Market, high energy prices, skills shortages and limited access to long-term risk capital continue to constrain growth, innovation and scaling-up across the Union.

Technological transformation is accelerating globally. Europe must not only innovate, but also create the conditions to scale, diffuse new technologies across sectors, and enable firms of all sizes, particularly SMEs, to grow within a truly integrated Single Market. BusinessEurope's members recognise the renewed political focus on competitiveness, but without coherence, simplification and rapid implementation, Europe risks falling further behind in productivity and strategic autonomy.

Europe's economic strength is the foundation of its prosperity, resilience and global influence. What is needed now is unity and determination across European institutions and Member States to turn ambition into measurable results. Delivery must define the next phase of Europe's competitiveness agenda.