Global capital sees potential in Europe but calls for lighter regulation

Europe currently has a unique opportunity to attract investment and strengthen its strategic autonomy, but it will have to cut regulatory red tape and speed up reforms if it is to compete with the United States and Asia. That was one of the key messages to emerge from the FII Institute (Future Investment Initiative Institute) summit in Rome, which brings together political leaders, business figures and investors from around the world.While the G7 was dominated by geopolitics, Rome has put the spotlight firmly on the economy. As the leaders of the main Western democracies debated security, trade and international conflicts, the FII Priority Europe summit brought together investors, business leaders and policymakers to examine how Europe can regain economic momentum and attract the capital it needs to finance its industrial and technological transformation.Greater flexibilityRichard Attias, chairman of the executive committee of the FII Institute, delivered a direct message to Europe’s policymakers: the continent has the talent, innovation and industrial capacity it needs to lead the next phase of global growth, but it must create a more investment-friendly environment.“Europe remains one of the most attractive markets in the world, but investors are looking for clarity, predictability and speed in decision-making,” Attias said in his speech. He argued for greater regulatory flexibility and a simplification of administrative procedures to make it easier for capital to flow into strategic sectors such as artificial intelligence, digital infrastructure, clean energy and advanced manufacturing.Attias warned that, in an environment of intensifying competition for global investment, Europe is competing not only with the United States but also with emerging economies that are fast-tracking reforms to attract companies and major industrial projects. In his view, the challenge is not to abandon European standards, but to strike a balance between regulation, innovation and growth.“The world is moving at high speed, and so is capital. Europe has an extraordinary opportunity to lead the next economic transformation, but it must ensure that the conditions for investing are as competitive as in other regions,” he stressed.The FII Institute executive placed this challenge within the broader debate on European strategic autonomy and underlined that the continent’s ability to finance its energy transition, develop home-grown technologies and strengthen its supply chains will largely depend on its capacity to mobilise both public and private capital on a large scale.Europe, a long-term investmentThe same message was echoed by Yasir O. Al Rumayyan, head of Saudi Arabia’s Public Investment Fund (PIF) and chairman of Aramco. In his view, Europe is at a decisive moment in defining its place in the new global economy, and he stressed the importance of creating the right conditions to channel investment into long-term projects. “Europe has enormous opportunities in areas such as the energy transition, technological innovation and strategic infrastructure.”Al Rumayyan’s words carry particular weight in international markets: the PIF manages assets worth around 1.15 trillion dollars, making it one of the largest funds in the world, and Aramco, the planet’s biggest oil company, posted profits of 93.5 billion dollars last year.The choice of Rome as the venue is no coincidence: for the organisers, the Italian capital symbolises Europe’s ability to combine its historical legacy with a reform agenda focused on the future, a message that has resonated throughout the summit. The continent still holds huge appeal for global capital, but it will have to speed up reforms and adapt its regulatory framework if it is to turn that potential advantage into sustained economic growth.