A new report from Roland Berger at the World Economic Forum highlights signs of stabilisation in Europe’s competitiveness, driven by gains in human capital, sustainability, resilience and infrastructure, but warns that digitalisation remains a critical challenge.
Davos , After years of decline, Europe’s competitive position shows early signs of stabilisation, driven by gains in human capital, sustainability, resilience and infrastructure, according to the “European Future Readiness Index” presented by Roland Berger at the World Economic Forum in Davos.
The index, covering EU member states plus Norway, Switzerland and the UK over a 20‑year horizon, aggregates six sub‑indices , Humankapital, Nachhaltigkeit, Digitalisierung/Innovation, Resilienz, Infrastruktur and Institutionen , from 24 indicators. Roland Berger reports that five of those six sub‑indices have recently risen above their long‑run averages, marking “a slight reversal of a long‑term downward trend”, though the firm cautions the overall level remains “absolutely too low”. Stefan Schaible, Global Managing Partner at Roland Berger, said the continent “has the economic scale, industrial base and institutional capacity to restore competitiveness” but must “continue to make massive efforts”.
The human capital rebound is notable: public education spending and rising participation of women in leadership, together with growing university graduate shares, underpin the upturn since 2018. Sustainability, which slipped between 2014 and 2021, has resumed positive momentum. Resilience has materially improved since 2020, the report says, citing higher defence outlays and falling corporate leverage. Infrastructure, dented in prior years by elevated energy costs, also showed a mild recovery in 2024.
Yet the study flags a critical weakness in digitalisation and innovation. Roland Berger warns that Europe’s progress on AI, digital adoption and patenting is insufficient, with only a modest recovery in 2024 from a 2021 trough. “This is the Achilles’ heel where the continent’s future readiness will be decided,” the analysis concludes. The firm’s broader research on innovation performance echoes this diagnosis: the Innovation Indicator 2025, produced with the Federation of German Industries (BDI), finds many economies generate knowledge effectively but struggle to commercialise new ideas, and notes a decline in openness and international collaboration that risks slowing technology transfer.
To cement the nascent turnaround, Roland Berger recommends four policy and market actions. First, targeted simplification of regulatory frameworks and clearer allocation of responsibilities between EU and national authorities to reduce bureaucratic drag and speed approvals. Second, closing commercialisation gaps through simpler financing structures, higher private R&D spending and stronger support for start‑ups and scale‑ups. Third, finishing the Capital Markets Union to unlock cross‑border capital flows, broaden access to growth funding and strengthen the euro, including advancing a digital euro. Fourth, exploiting industry data pools with AI to accelerate industrial innovation.
Those prescriptions align with the firm’s commercial outlooks. The European Private Equity Outlook 2026 anticipates rising M&A and an investor focus on value creation, specialisation and resilience , trends that require deeper capital markets and faster technology adoption. Roland Berger’s perspectives on exit readiness also underline the importance of data‑driven performance improvements in preparing industrial assets for divestment as market activity recovers.
The recommendations carry particular resonance for the industrial decarbonisation community. According to Roland Berger’s Davos agenda, harnessing industrial AI and structured data can reimagine value creation, create jobs and boost resilience while supporting climate objectives. Industry players and policymakers face a narrow window to scale commercial deployment of low‑carbon technologies; success will depend on faster commercialisation pathways, co‑ordinated regulatory reform and improved access to growth capital.
Not all institutional challenges are addressed by market measures alone. The institutions sub‑index remains below its earlier peaks, weakened after the global financial crisis and further eroded since 2018 by rising sovereign debt and regulatory complexity. Roland Berger argues simplification and a clearer, predictable investment narrative are prerequisites for attracting international partners and the private capital needed for industrial transformation.
For business leaders in decarbonisation and industrial transformation, the report offers a pragmatic playbook: invest in workforce skills and digital capabilities, exploit industrial data with AI, press for regulatory streamlining, and engage with evolving capital markets to mobilise cross‑border funding. According to Roland Berger, success will require coordinated action by governments, investors and industry to translate improving sub‑indices into sustained, broad‑based competitiveness gains.
- https://www.ots.at/presseaussendung/OTS_20260121_OTS0026/roland-berger-studie-europas-wettbewerbsfaehigkeit-zeigt-erste-anzeichen-einer-trendwende – Please view link – unable to able to access data
- https://www.rolandberger.com/en/Insights/Publications/European-Private-Equity-Outlook-2026.html – Roland Berger’s ‘European Private Equity Outlook 2026’ forecasts a continued recovery in the private equity market, with expectations of increased M&A activity and a focus on sectors like technology and business services. The report highlights the importance of value creation and specialization, noting that investors are concentrating on resilience and innovation to drive future growth. It also discusses regional variations, with Central and Eastern Europe anticipated to experience the strongest momentum, and addresses challenges such as valuation multiples and debt financing.
- https://www.rolandberger.com/en/Insights/Publications/Innovation-Indicator-2025.html – The ‘Innovation Indicator 2025’ by Roland Berger, in collaboration with the Federation of German Industries (BDI), assesses the innovation performance of 35 economies. The study reveals that while many countries effectively generate knowledge, they face challenges in commercializing new ideas. It also notes a decline in openness within innovation systems, influenced by the COVID-19 pandemic and rising protectionism. The report emphasizes the need for targeted investment, international partnerships, and the ability to translate scientific strength into economic impact.
- https://www.rolandberger.com/en/Insights/Publications/Innovation-is-the-key-to-a-sustainable-prosperous-future.html – This Roland Berger publication examines the critical role of innovation in achieving a sustainable and prosperous future. It highlights the varying performances of countries across different innovation criteria, noting that some excel in certain areas while others lag behind. The report provides a detailed breakdown of individual innovation sectors, including digital hardware, digital networks, advanced production technologies, energy technologies, and advanced materials, offering insights into global innovation landscapes and the factors influencing competitiveness.
- https://www.rolandberger.com/en/Insights/Global-Topics/Roland-Berger-at-Davos/ – Roland Berger’s participation at the World Economic Forum Annual Meeting in Davos 2026 focuses on aligning Europe’s climate, security, and growth agendas to enhance competitiveness. Senior Partner Stefan Schaible emphasizes the need for coordinated action among governments, businesses, and investors. The discussion also covers Europe’s industrial and technological strengths, advocating for a clear and predictable investment narrative to attract international partners. Additionally, the role of industrial AI in driving global growth is highlighted, with a focus on reimagining value creation, job opportunities, and resilience.
- https://www.rolandberger.com/en/Insights/Publications/The-critical-role-of-exit-readiness-in-today’s-private-equity-landscape.html – This Roland Berger perspective outlines the strategic importance of exit readiness in the private equity sector. It discusses how prolonged holding periods and compressed returns have made proactive value creation essential ahead of divestment. The report introduces a structured, data-driven ‘Exit-Ready Sprint’ to prepare portfolio companies for challenging times. With market activity projected to increase by 2026, firms that prioritize readiness are positioned to lead the way, demonstrating real performance improvements and credible upside to potential buyers.
- https://www.efginternational.com/bs/insights/2025/outlook-2026.html – EFG International’s ‘Outlook 2026’ publication provides insights into global economics and policy trends, including bond markets, geopolitics, and innovation. It discusses the impact of geopolitical developments, such as new alliances and state capitalism, on the global economy. The report also highlights opportunities in the AI race and examines market opportunities in emerging markets, private markets, IPOs, and M&A activity. Additionally, it offers perspectives on an EU revival, focusing on restructuring and reform efforts within the European Union.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on January 21, 2026, coinciding with the World Economic Forum in Davos. The earliest known publication date of similar content is January 21, 2026, indicating freshness. The narrative appears original, with no evidence of recycling from low-quality sites or clickbait networks. The content is based on a press release from Roland Berger, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The article includes updated data and does not recycle older material. Overall, the freshness score is high.
Quotes check
Score:
7
Notes:
The direct quotes from Stefan Schaible, Global Managing Partner at Roland Berger, are consistent with the press release. No earlier usage of these quotes was found, suggesting originality. However, the quotes cannot be independently verified, as they originate from the press release. The wording of the quotes matches the press release, with no variations noted. Given the reliance on the press release for verification, the score is moderate.
Source reliability
Score:
9
Notes:
The narrative originates from a press release by Roland Berger, a reputable global management consultancy. While press releases are promotional, Roland Berger is a well-established firm with a strong reputation. The content is not summarised or aggregated from other sources, indicating independence. No fabricated entities are mentioned. Overall, the source reliability score is high.
Plausability check
Score:
8
Notes:
The claims about Europe’s competitiveness and the recommendations for policy actions are plausible and align with current economic discussions. The narrative is covered by other reputable outlets, such as Finanznachrichten.de, indicating corroboration. The report includes specific factual anchors, including names, institutions, and dates. The language and tone are consistent with the region and topic. No excessive or off-topic details are present. The tone is formal and appropriate for a corporate report. Overall, the plausibility score is high.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents a press release from Roland Berger regarding Europe’s competitiveness, published on January 21, 2026, coinciding with the World Economic Forum in Davos. The content is original, with no evidence of recycling from low-quality sites or clickbait networks. The quotes are consistent with the press release but cannot be independently verified. The source is reliable, originating from a reputable global management consultancy. The claims are plausible and align with current economic discussions, with corroboration from other reputable outlets. The content is freely accessible online, with no indications of paywalled material. The narrative is a factual news report based on the press release. However, the verification sources are limited, primarily relying on the press release and a summary from Finanznachrichten.de. Given the reliance on the press release for verification, the overall confidence is medium.
