“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 EUand the rest ofthecontinenthave languished. Since thefinancial 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 impressedbyflamboyant 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 marketsunion 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,wewill revealourannual Fortune 500Europe, 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,Shelland Glencore.The 2026 indexwill be atreasure troveofstatistics onprofits,revenuesand growth—with many lessons from the successes ofthose listed.
On the same day, C-suite leaders from across Europe and the Middle East will be gathering in Londonfor Fortune CEO Forumto talk aboutgrowthand sharesuccesses andbest practices. Leaders from Anthropic and OpenAI will be in the room with the CEOs of Ferrari and Volvo Cars U.K. The U.K.chairmanof energy giant EDF will sit alongside board members from NatWestandthe in-countryCEO ofSociété Générale.Defense sector policymakers will discuss infrastructure investment with the likes of Honeywell and Tech Mahindra.Entrepreneursfrom banking, AI deliveryandtelecoms will talk about future opportunities.From Microsoft to Shell,C-suiteexecutivesrepresentingnearly $2trn of wealth will bein the room.
On September 16 C-suite leaders from across Europe and the Middle East will be gathering in Londonfor Fortune CEO Forumto talk aboutgrowthand sharesuccesses andbest practices.
Alongsidethe data from the Fortune 500 index,thereare other reasons for optimism.Europe’s Innovation Scorecard, a test of research and investment trends compiled by the European Commission, revealed thatinnovationperformance 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 growthremainsrobust, and labor markets haveremainedresilient despite sub-potential growth, with the unemployment rate at an all-time low.”
As a continent keen on saving, consumer confidenceremainspositive despite stubbornly high inflation. Most families are comfortablyliquidand spending is continuing to rise. Incomes are up without thedeleteriouseffects 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.
