Europe: Family businesses expect a better financial year in 2026
A majority of family businesses in Germany, France, Italy, and Spain expect economic conditions to improve, according to a survey of nearly 2,000 companies conducted by Edelman Data & Intelligence in cooperation with the ifo Institute. In these four leading European economies, 55% anticipate a better business situation in the first half of 2026, while fewer than one third expect no change. In Germany, only 13% foresee a deterioration.
Improved economic development
Optimism is even stronger over the longer term. Around two thirds of family businesses expect economic development to improve over the next five years, with the highest share in Spain (72%), followed by Italy (67%), Germany (66%), and France (63%).
To strengthen competitiveness, two thirds of respondents identified reduced bureaucracy and faster, simpler approval procedures as the most important EU reforms. Despite criticism of bureaucratic burdens, most family businesses rate the EU’s performance over the past five years positively.
Risks and challenges
Looking ahead, companies see rising energy prices as the greatest risk to competitiveness, followed by skills shortages and IT security risks. Geopolitical tensions, trade barriers, and regulation also pose challenges, with bureaucracy costs cited particularly often in Germany.
The survey was conducted between 28 May and 7 July 2025 and included around 500 companies in each country.