Europe’s economy is recovering, benefiting from a strong crises’ response. Yet, the recovery is falling short of its full potential. Uncertainty about persistent core inflation, policy directions, and geopolitical conflicts, is dampening the near-term outlook. In the longer term, perennially weak productivity growth—a result of limited scale and business dynamism–-amid new headwinds from fragmentation and climate change are holding back growth potential. Steady macro policies are needed to navigate an uncertain environment. This requires transitioning to a neutral monetary policy stance and reducing fiscal deficits without jeopardizing the recovery. Policymakers also need to tackle barriers to higher potential growth. A larger and more integrated single market for goods, services, and capital will incentivize investment, innovation, and generate scale benefits. Deepening European integration will also strengthen economic resilience by insulating businesses and labor markets from global...
🇪🇺 The report demonstrates the significant progress the EIC has made to become the investor of choice for European deep tech entrepreneurs. Here are some highlights from this year’s edition. EIC Fund's impressive investment record ✅️ The EIC Fund has emerged as a leading early-stage technology investor in Europe. It has completed over 150 investment rounds in start-ups and SMEs, under Horizon Europe, including 60 rounds in 2024 alone. The Fund has also attracted more than €2.6 billion in co-investment in direct equity rounds, primarily from private investors, equating to over €3 of additional investment for every euro of EIC Fund's direct investment since it was established in 2020. Accelerating start-up growth 🔺️ The EIC has been instrumental in accelerating the growth trajectory of start-ups. Over 70 EIC-backed companies have attained 'centaur' status, with valuations exceeding €100 million, and six of these companies are valued at over €500 million. On aver...