EU Regulatory Challenges Continue to Restrain Growth Prospects for Family Businesses in Germany and Europe

A recent survey conducted by Edelman Intelligence for Stiftung Familienunternehmen reveals that while the European Union remains a potential growth avenue for family businesses, significant regulatory and bureaucratic hurdles persist, especially impacting German companies. The survey, which collected responses from 2,100 business leaders across seven European countries—including Germany, France, Italy, Spain, the Netherlands, Poland, and Sweden—highlights a widespread skepticism toward the EU’s ability to reduce bureaucratic burdens. Particularly in Germany, confidence in the EU’s promise to ease administrative complexity remains low.

Only about half of the respondents expect improved business success in the coming year. Notably, family businesses in Poland, Sweden, and Germany perceive the EU as less economically attractive than they did two years ago. Despite this dim outlook, German and Swedish firms have increased their investments within the EU during this period, underscoring a complex dynamic of caution paired with ongoing commitment.

The findings suggest that the EU’s single market could become a more powerful growth enabler for family businesses if greater integration and competitiveness were achieved. However, these goals appear hampered by persistent regulatory challenges that continue to restrain investment enthusiasm and growth ambitions. The survey’s insights underscore the need for EU institutions to fulfill their promises of reducing bureaucracy to unlock the sector's true economic potential.