Despite growth of developing countries, new study finds Europe remains the most profitable and easiest region to do business for US companies

The Case for Investing in Europe 2014, a new study by Joseph Quinlan, Transatlantic Fellow at the Center For Transatlantic Relations, shows that despite the Eurozone crisis, the region offers tremendous opportunities for US businesses and remains the most profitable region in the world for corporate America. The crisis has triggered EU-wide structural reforms that will make Europe stronger, not weaker in the longer term. Meanwhile, the European Union remains the largest and wealthiest economy in the world.

The report, commissioned by AmChams in Europe, the network of 45 AmChams in Europe and wider Europe, reveals that despite Europe’s economic difficulties, the region still accounts for about half of total US foreign affiliate income last year, which is roughly double the income from the Asia-Pacific region. This speaks volumes about Europe’s underlying importance to corporate America. Europe accounts for about 30% of global personal consumption and its economy is as large as that of the US.

American business is also vital for the European economy, with aggregate US investment in Europe totalling €2 trillion in 2013 and supports more than 4.2 million jobs. Though the European economy is recovering from the economic crisis, much more can be done. ‘At a time when Europe needs more investment, the huge role played by American business should not be overlooked’, stated Susan Danger, Managing Director of AmCham EU. She went on, ‘By creating an environment that welcomes foreign investment, EU decision-makers will ensure sustainable growth in Europe’.

The Transatlantic Trade and Investment Partnership (TTIP) could further increase Europe’s value to corporate American and would be a global game-changer. The potential benefits of successfully implementing TTIP are considerable, and not limited to trade, but for investment as well.