Apr 19, 2024 Europe

European Transformation: Are we there yet?

Assessing progress towards reaching 2030 targets is essential for Europe’s future success. It also highlights the need for more investments and further policy action

The DWS European Transformation Scorecard


* Weighted Score covers the distance towards 2030 climate, digital and social targets across the following 12 equally weighted sectors: climate, energy, biodiversity, economic development, technology, transportation, digital, supply chains, urban resilience, water, healthcare and social.

Sources: DWS Research Institute, DWS Investment GmbH as of 4/16/24

Our findings show that at a country level, Sweden is the winner, performing strongly in areas such as renewable energy, R&D spending and urban resilience with the Netherlands, and Switzerland as runners up. Spain, Poland and Italy are at the bottom of the scorecard, partly reflecting comparatively less certain regulatory environments for private sector investments.

Our analysis also identifies four sectors where stronger policy action and investment requirements are especially urgent: electrifying the transportation sector, energy efficiency measures in real estate, improving healthcare outcomes and delivering on decarbonization more generally. Of all the 12 sector transformations, only the technology, digital economy and the social pillar, encompassing housing affordability, education and training, can claim to be moving in the right direction across the countries investigated.

Europe must therefore continue to innovate and adopt transformational technologies by creating a supportive regulatory environment and prioritize investing in research and development. Deepening the Single Market and completing the Capital Market Union[1] should help to mobilize private capital, which are urgently needed to fulfil many of the ambitious goals set for Europe’s transformation. Looming elections to the European Parliament from June 6th to 9th could weaken these ambitions in the next legislature. However, the implementation measures now required are often quite technical and somewhat insulated from changing political winds. We expect progress to continue - unevenly.

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1. Europe's single market refers to the removal of barriers to the free movement of goods, capital investments, services, and people. The Capital Market Union would extend this deepening further, especially in financial markets and services, in order to a achieve a true, single capital market in Europe.

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