Looking at developments within the EU, we face enormous challenges. A report by Draghi shows that EU countries need to invest €800 billion to regain competitiveness against other economic power blocks (China and the US). The EU wants to be at the forefront of meeting all environmental targets (which in itself is a great goal), but this comes at the expense of our competitiveness. China, the US and India consider this less important and thus produce much cheaper. In addition, regulations are too complex for companies to invest quickly. On average, within the EU, it takes seven to eight years to obtain all the necessary permits to build a factory. More innovation also needs to take place.
Automotive
The European automotive sector is exemplary in this respect. Much needs to change in this sector in the short term to improve its competitive position against Chinese car manufacturers and Tesla. Manufacturers like Volkswagen and Mercedes can only just keep their heads above water.
Ruddy
All this uncertainty and geopolitical developments mean that 2025 will be a turbulent year. This will undoubtedly lead to more economic headwinds and an increase in insolvencies. So companies need to become more alert, monitor buyer payment behaviour well and hedge risks. But it also offers opportunities again. Dutch companies are generally innovative and seek new product-market combinations. Companies are also forced to become more cost-effective. Ultimately, this in turn will lead to a stronger competitive position. So after years of growth, it is also sometimes good to face some headwinds again, it keeps us on our toes!
