Business profits are in good shape, and firms will be well placed to continue their high levels of investment as needed. They are also displaying a strong propensity to borrow, with business credit growth at its highest for nearly two decades.
That said, it is clear that the digital and green transition cannot only be led from the top down – it has to be driven by businesses and their ability to be leaders in innovation. The global innovation and technology landscape is evolving rapidly and is characterised by the winner-takes-all tendencies of digital technologies. In many areas, Europe is doing well.