EU loses business appeal as companies relocate abroad

2025-01-12 08:25:59

(MENAFN) The European Union is facing a decline in its attractiveness as a business hub, with many companies opting to relocate to other regions, according to a draft economic report by the European Commission, cited by German news agency dpa on Saturday. The report highlights that only four of the world's 50 largest technology companies are based in Europe.

The official report, due for release next week, states, "Europe’s attractiveness as a business location is declining." Between 2008 and 2021, nearly one-third of the so-called "unicorn" start-ups founded in the EU moved their headquarters abroad, primarily to the United States.

Unicorns, which are privately-owned companies valued at over USD1 billion, typically focus on technology, grow rapidly, and attract significant investment.

These companies are seen as key drivers of economic growth due to their ability to set new industry standards through technological innovation. Notable unicorns that relocated from Europe to the US include Swedish fintech firm Klarna, Romanian-founded UiPath specializing in robotic processes, and Swedish music streaming service Spotify.

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