New analysis by ADVANT, the European law firm association represented in Italy by ADVANT Nctm, on the opinions of over 800 General Counsel in Europe and the United States on the future of European competitiveness.
Four key areas of analysis: Europe’s stability and attractiveness, regulatory simplification as a driver of competitiveness, AI and cybersecurity, and the strategic role of General Counsel.
General Counsel see Europe as a reliable and resilient environment, increasingly central to investment strategies in response to global uncertainties.
Reducing regulatory complexity and achieving greater harmonization of rules are identified as top priorities to support growth and investment.
Artificial intelligence and cybersecurity are emerging as sensitive areas, both due to the urgent need for regulatory intervention and the potential operational risks involved.
General Counsel are expanding the scope of their role, supporting company management in strategic decision-making and in navigating geopolitical risks.
Europe remains a solid and attractive market for investment and businesses, even in an international context marked by economic and geopolitical uncertainty.
This is the key finding of Europe’s Opportunity Outlook, the new report published by ADVANT — the European law firm association represented in Italy by ADVANT Nctm — based on the views of General Counsel (GC) in Europe and the United States.
The research was based on a survey of over 800 General Counsel (or equivalent roles) in France, Germany, Italy and the United States, working in companies with annual revenues exceeding $100 million. The survey was also accompanied by a series of in-depth qualitative interviews with GC in France, Germany, Italy, the United Kingdom and the United States.
According to the panel surveyed, Europe confirms its position as a solid region: indeed, 82% of General Counsel believe the area may benefit from new inflows of international investment. Furthermore, 66% of respondents rank Europe as their top destination for international expansion: some 83% expect to consolidate their presence in European markets where they already operate, while a similar share (82%) plan to expand their presence to new European countries over the next three to five years. This view is also shared by the Italian General Counsel interviewed: 69% believe the Old Continent is ready to benefit from globally driven growth opportunities. Europe as a whole is therefore considered an important source of new opportunities for all companies planning to launch internationalisation programmes in its market and key countries, such as Italy.
The ADVANT survey covered four key areas:
1) European stability as a competitive advantage
The results show a high level of confidence in the European environment: 84% of GC consider it stable and reliable. US General Counsel surveyed are even more optimistic than their European counterparts: 87% believe that Europe will benefit from global business expansion, compared to 71% in France, 76% in Germany and 69% in Italy.
2) Regulatory simplification
Alongside confidence in the European system, the report highlights the need to move forward decisively with regulatory simplification and harmonisation, identified by General Counsel as the main area for action to strengthen the EU’s competitiveness and encourage investment. One in five respondents (20%) identify simplification and greater regulatory uniformity as the most urgent reform priorities, followed by more effective tax incentives (16%) and greater support for innovation (15%). Although the European legal and regulatory framework is generally considered to be reliable and stable, there is a perception of relative weakness in terms of its ability to stimulate innovation and facilitate business. However, Italian General Counsel show a countetrend compared to the rest of the sample interviewed, expressing a more positive view of the European legal system’s openness to innovation (39%, compared to 33% in Germany and 31% in France). There is, moreover, a strong belief in Europe’s leading role in ESG: 85% of respondents think that the EU will continue to be a global leader in sustainability regulation.
3) Priorities: AI and cybersecurity
Artificial intelligence and cybersecurity emerge as central issues at both the regulatory and operational levels. 41% of GC indicate AI as an area requiring urgent regulatory intervention, particularly in light of Europe’s structural lag behind the United States and China, while 38% point to cybersecurity, in a context where the continent is widely considered a prime target for cybercrime. At the same time, 42% consider such areas to be among the main internal risks for legal teams, which are called upon to ensure compliance and risk management in a rapidly evolving technological environment. In this context, however, the Italian General Counsel in the sample show a more positive attitude towards innovation and artificial intelligence, which only 38% perceive as a possible “threat” to their daily work.
4) Evolution of the General Counsel’s role and expectations
The report highlights the growing evolution of the role of General Counsel, who are increasingly involved in strategic business decisions. Indeed, 72% of General Counsel say they regularly support management in assessing geopolitical risks, confirming an expansion of responsibilities beyond the traditional legal function. In this scenario, technological innovation also becomes a distinctive factor in the choice of external legal advisors: 36% of General Counsel say that the use of technology, including AI, significantly affects the selection of external advisors, a percentage that rises to 40% for Italian General Counsel. This transformation is also reflected in the expectations towards external advisors: 39% of GC prefer a hybrid model of legal support, combining a regional presence with specialist expertise. In this context, breadth of expertise, sector experience and coverage of key European countries emerge as the most relevant criteria when selecting legal advisors.
Guido Fauda, Partner at ADVANT Nctm and member of the ADVANT Steering Group for Italy, commented: “The EU has set clear objectives to boost competitiveness and future prosperity by simplifying regulation and aligning EU and national policies. However, it remains to be seen whether these actions will be truly sufficient and implemented swiftly. There is a real risk that the volume and complexity of regulation may disadvantage companies operating in Europe compared to jurisdictions with less burdensome rules. At the same time, the EU remains one of the world’s leading economies, with a reliable and predictable legal and regulatory system, and continues to offer a resilient and attractive environment for investment and business, even in a rapidly changing global scenario marked by geopolitical and economic uncertainties, as is clear from the assessments of the General Counsel called upon to lead the legal departments of the companies involved in our research. In particular, the report also clearly shows that Italian General Counsel continue to believe in the strong potential of European development, proving to be even more open - compared to their colleagues interviewed - on some of the most decisive issues, such as the role of technological innovation. These are extremely important drivers that are already part of our daily lives and which, at ADVANT Nctm, we are translating into concrete actions to continue supporting our clients with advice that is closely aligned with their real needs and capable of internalising and turning the continuous evolution of the market into actionable strategies”.
“Furthermore, this survey – carried out by ADVANT, our European law firm association – once again confirmed the importance of sharing insights and reflections that can help foster a common vision and approach”, added Guido Fauda. “This work revealed some extremely important findings, on the basis of which we can develop shared approaches aligned with the needs of businesses, which will increasingly require specialised and tailored advice on the most decisive and strategic aspects, as highlighted by our survey.”
For further information and access to the full report: www.advantlaw.com/europe
