The survey, based on insights from 42,000 businesses across 27 countries, reveals that Europe’s entrepreneurs are bracing for another challenging year. High labour costs, persistent skills shortages, and a growing regulatory burden are cited as the primary threats to Europe’s already fragile competitive edge.

Speaking this morning at the Irish launch, Chambers Ireland Chief Executive, Ian Talbot said:

“Irish businesses are approaching 2025 with optimism but despite an increase in business confidence compared to last year, significant challenges remain. High labour costs and an ever-growing regulatory burden continue to be major obstacles and expectations for export sales have deteriorated. Combined, this points to a weakened competitive edge.”

The September 2024 Draghi Report on competitiveness sets out how Europe’s economic performance has fallen behind. The 2025 Eurochambres Economic Survey underscores that much needs to be done to reverse this trend.

Talbot put it bluntly: “We are at a tipping point for our businesses. The ‘regulate first, deal with the consequences later’ approach to EU policymaking must stop now. The new European Commission and co-legislators must focus on encouraging Irish businesses to invest, employ, innovate, and pursue opportunities within the single market and globally.”

Talbot continued:

“Though modest growth is expected in our domestic market, we are united with our European colleagues in calling for action to address this competitive pitfall.”

Speaking in Brussels, Eurochambres President, Vladimír Dlouhý said: “The EU must double down on enhancing Europe’s productivity and provide an enabling environment for businesses to grow and compete internationally.”

Key EES2025 policy messages:

  • Boost financing & simplify regulations: Strengthen financial support and regulatory frameworks to drive investment, foster business growth, and control labour costs.
  • Cut red tape: Honour the 35% reporting reduction target for SMEs and eliminate barriers to a smoother, stronger single market.
  • Build a skilled workforce: Attract top talent, support lifelong learning, and provide EU-wide funding for upskilling to meet tomorrow’s challenges.
  • Accelerate digital transformation: Promote digital solutions and AI adoption to streamline costs and drive productivity gains.
  • Power the future: Invest in modern, renewable energy infrastructure for affordable and reliable access to clean energy.
  • Enable market integration: Capitalise on the single market potential and pursue favourable conditions for international trade.

 

About Chambers Ireland:

Chambers Ireland is the voice of business throughout Ireland, with 37 member chambers across every major city, town and region of the island. Aligning our strategic priorities with the UN’s Sustainable Development Goals, our aim is to make places better to live, work and do business.

Chambers Ireland were selected by the Government as a National Champion of the UN Sustainable Development Goals in 2023-2024.