After a modest expansion of 0.9% in 2024, our Economic Outlook Autumn 2025 forecasts that growth will stabilise at approximately 1% in 2025 in line with the Spring edition, and then slightly increase to 1.3% in 2026. This underperformance of the EU economy reflects a complex and challenging landscape for European businesses, with increasing trade tensions and continued structural competitiveness issues. Nevertheless, the relative stability provided by the EU–U.S. agreement reached in July, and the overall resilience of the EU economy, helped to avert more negative outcomes.

Learn why the EU–Mercosur trade agreement matters for Europe’s businesses and global trade.

As the 90-day pause on “reciprocal tariffs” continues, European business urges leaders on both sides of the Atlantic to restart and strengthen EU-U.S. trade relations. In a new position paper, BusinessEurope emphasises the importance of de-escalating trade tensions and developing a positive, forward-looking Transatlantic agenda. In September 2025, BusinessEurope conducted a focused survey to identify the main challenges affecting European companies operating in the U.S. market.