Europe today and tomorrow

Published on Tuesday, 13 September 2016

In a study, Enel and Ambrosetti highlight the necessary factors for the recovery of growth in Europe.

The future of investments in Europe lies in four key factors: clarity in investment strategies, consistency and harmonisation of market regulations, cooperation between private and public sectors, and flexibility based on the needs of Member States. The European House – Ambrosetti (TEH–A) and Enel outlined a view of the “Old Continent’s” economic sector in the study “Empowering Europe’s investability: Policy recommendations for attracting investments towards Europe and the role of the energy sector and digitalization.” The document highlights that the European Union is the leading hub in terms of international investments thanks to its broad market, geo-political security, solid institutional background and technological scientific excellence.

Nevertheless, financial crisis fallouts, increased fragmentation among EU States and the possible consequences of Brexit represent potential sources of instability. The report identifies a number of priorities to avert this risk and boost investments: to ensure a more stable regulatory environment and accelerate the completion of the European internal market, improve existing infrastructures and build new ones, focus on innovative and sustainable technologies, support network industry and promote cooperation between Member States. The so-called network industries – energy, transport, ICT – therefore enable competitiveness, growth and employment.

According to Enel CEO Francesco Starace, Europe is facing a difficult challenge in terms of ensuring a continued economic and sustainable growth, in which investments will play a central role. “As a leader in the global utility industry, Enel is at the forefront of the sector’s profound change. We therefore recognise the importance of policies that effectively respond to rapid technological progress, as well as patterns that promote innovation as the basis for a stimulating macroeconomic investment scenario,” stated our CEO. “A clear stable, transparent and forward-thinking regulatory and legal framework, is crucial. This is especially true for Europe, where technological developments and market dynamics offer unique opportunities, not only in the energy sector, but in the economy as a whole.”

Starace discussed these issues among others in an interview with Cnbc, a leading international financial and economic current affairs channel. The CEO highlighted that the industry’s decarbonisation process, which is sponsored by COP21 (the UN Conference on Climate Change in Paris), is a great opportunity for utility growth. Our company has therefore announced its plan to achieve carbon neutrality by 2050, by totally eliminating CO2 emissions from all production activities.