According to the EY Europe Attractiveness Survey, 5,026 new investment projects were announced in Europe in 2025, representing a 7% decrease from 2024 and marking the lowest level in 11 years. France retained its status as the leading investment hub, although the number of projects in the country declined by 17% to 852.
The United Kingdom ranked second with 730 projects (-14%), followed by Germany in third with 548 projects (-10%), the largest decrease since 2009. Between 2019 and 2025, the number of projects in Germany fell by 44%, compared to 28% in France and 34% in the United Kingdom. Spain (+20%) and Turkey (+7%) saw project growth in 2025, ranking fourth and fifth, respectively. Poland saw a 10% increase in projects, reaching 285, making it the sixth-most popular destination.
American companies remain the largest investors in Europe with 943 projects. At the same time, German business, despite reduced activity, occupies second place with 484 projects. Global foreign direct investment volumes decreased by 11% in 2024 to $1.49 trillion, with Europe attracting only around $182 billion, representing a 58% decline from the previous year.
Experts attribute this reduction in investment activity to slow economic growth, high energy costs, geopolitical instability, regulatory barriers, and trade tensions in the region.