Europe

A high level of legal stability, reasonable corporate freedom, and a large domestic market with a diversity of locations are just some of the many qualities of this economic region.

Europe continues to grow together. Even if the media sometimes give a different impression. Economically, the European states have never been so closely intertwined, and intra-European mobility has never been as extensive as it is today. With 450 million people, the 27 EU member states represent the largest common market in the world.

The currently observable decoupling resp. derisking between China and the USA, as well as the increasing tendency of important foreign markets to close themselves off, present significant challenges to the EU-27 countries. The ongoing war in Ukraine and the conflict in the Middle East are also causing ongoing uncertainty in Europe.

But the international standing and sovereignty of the economic community is growing. While the economic policy parameters are gradually being further harmonized, there are numerous differences that make each market unique due to cultural and legal aspects. Although the bureaucratic effort involved is often not insignificant, there are few regions in the world where companies can operate as freely and with as much legal certainty as in Europe.

Germany, with a population of over 80 million, is by far the largest economy in Europe and is still considered one of the most international economies in the world. Exports account for around 50% of annual gross domestic product, making Germany the third largest export nation in the world. The title of the world's largest exporter is claimed by China, followed at a considerable distance by the United States.

We guide you through this diverse investment landscape, finding numerous opportunities for you and keeping an eye on the hidden risks.

In our study, the German-British Business Outlook 2024, and our survey on Brexit, The grave consequences of Brexit, we have analyzed the impact of the UK's exit from the EU and provide recommendations for action for affected companies. One key finding is that almost a third of the companies we surveyed expect a decline in sales in 2024 as a result of Brexit. This expectation is due to higher administrative expenses, increased logistics costs and higher customs duties.

Our German-Ukrainian Business Outlook 2024 study shows that Ukraine is an attractive investment destination in Europe for German companies despite the ongoing war. 43 percent of the companies surveyed are planning new investments in Ukraine. However, political and economic stability as well as the availability of public funding and guarantees are important prerequisites, as war-related risks remain the biggest challenge for more than half of the companies.

You are a German company and want to expand globally, transform your foreign business activities or are looking for interesting investment objects? Or are you an international investor with the goal of expanding your business opportunities in the German or European market? No matter where you come from, what your ambition is or what language you speak, KPMG International Business offers you the right support.

We cluster our cross-border business into the four market regions Africa/Middle East, Americas, Asia/Oceania and Europe, each with specific challenges and market conditions. In addition, we are represented in numerous countries by German-speaking experts on site to offer you the best possible local advice. Feel free to contact your KPMG country expert and we will take care of your concerns.