Filenews 23 November 2025 - by Charalambos Zakos
The president of BusinessEurope (the largest pan-European employers' organization and business associations), Fredrik Persson, sent a message to the European Union from Nicosia, who in an interview with "F" elaborates on the challenges of European businesses, calling on politicians to move from words to deeds, to strengthen competitiveness.
The interview with Fredrik Persson took place on the sidelines of the Summit of the presidents of the organization, hosted by the Federation of Employers and Industrialists (OEB) in Nicosia, on November 20-21, 2025.
Against the backdrop of the upcoming Cyprus Presidency of the Council of the EU, Mr. Persson analyses the challenges for the competitiveness of European businesses, the reduction of the regulatory burden, trade relations with the US and the role of Cyprus and OEB in the European business ecosystem.
–BusinessEurope held the Summit of the Presidents and General Managers of the employers' federations-members of BusinessEurope in Nicosia on 20-21 November 2025. What is the significance of this important event in Cyprus, both for the country and for the European business community?
The Council of Presidents of BusinessEurope brings together the presidents and general directors of the member federations of BusinessEurope. It is the General Assembly of BusinessEurope, which meets twice a year, to determine the positions to be promoted by its 42 member organizations from 36 European countries on the strategic challenges faced by European businesses.
This meeting takes place at a critical juncture, both for Cyprus and for the EU, in view of the start of the Cyprus Presidency of the Council of the European Union. It is an important opportunity to highlight the key issues for the business world in view of the Presidency and for the leaders of our member federations to exchange views on the best way to deal with them. When we speak with one voice on behalf of the European business community, we can have a greater impact on finding solutions to get the European economy back on track for growth and strengthening the European Union.
–What are your expectations after the discussions and the results of the Nicosia Summit and how do you think the European business agenda for 2026 and beyond can be shaped?
A competitive European economy, with strong European companies, is a prerequisite for realising Europe's security ambitions, as well as the green and digital transitions. Sending clear signals that Europe is raising the bar in implementing promised policy improvements during the future Cyprus Presidency is more important than ever. We hope that a united voice from our Council of Presidents will lead to an intensification of these efforts.
– From your point of view, what are the biggest challenges facing European businesses today, at an economic, political level and in terms of their competitiveness?
Given the current geopolitical environment and in particular the tensions in global trade, it is vital that Europe remains united in defending its interests at global level.
We support the agreement reached with the US, even if it is far from ideal, because it has made it possible to avoid a detrimental escalation of tariffs and provides the basis for continuing the necessary effort to resolve the outstanding issues in transatlantic relations.
It is therefore important to avoid seeking amendments that would undermine the EU-US Framework Agreement. Diversification of trade relations is also an integral part of the response, and the swift ratification of the Mercosur agreement is a central element of such a trade diversification strategy.
In addition, it is crucial that the EU accelerates its programme to reduce the regulatory burden. If we are to move closer to the dual target of reducing the regulatory burden by 25% for all businesses and by 35% for SMEs, the simplification proposals currently on the table must be adopted and implemented very quickly. Beyond that, we need a steady stream of omnibus-type legislation or similar burden-reducing measures.
In your view, what changes or reforms are most urgent for Europe in the coming years to boost growth and competitiveness?
A key internal reform that the EU needs to implement is the deepening of the Single Market. We need the full implementation of the Single Market Strategy and an ambitious roadmap for the Single Market by 2028 in order to remove barriers to cross-border trade and investment, including those stemming from the over-gold-plating of Single Market rules in the Member States.
Energy and climate policies must also focus on creating the right conditions to achieve Europe's ambitions.
European businesses remain fully committed to climate neutrality by 2050. However, goals alone will not yield the desired results. There must be incentives and a clear business incentive to invest in decarbonisation. Ensuring access to affordable energy, mobilising massive public investment, developing the necessary infrastructure and creating model markets will be key. Companies also need a stable and technology-neutral regulatory environment that avoids overregulation and encourages innovation.
-BusinessEurope's vision is to make Europe the most competitive, sustainable and prosperous place to live, work and invest. What concrete steps are being taken to turn this vision into reality?
To support the EU institutions in their much-needed simplification efforts, BusinessEurope has presented 68 concrete proposals in 3 key areas, generating disproportionately high compliance costs: administrative burdens (including reporting obligations), excessive adaptation burdens and cross-border regulatory barriers. Businesses operating in the EU need immediate action on all three pillars of burden.
We complemented these 68 proposals with a position paper on how to effectively simplify the EU's digital regulatory framework. The EU has become a global leader in digital legislation. However, with leadership comes the responsibility to ensure that regulation does not undermine the competitiveness and innovation of European companies in Europe.
As Europe seeks to strengthen its competitive position in an increasingly interconnected world, it needs to make the rules work – with clarity, simplicity and predictability.
–As a recognised social partner, BusinessEurope works closely with the European Parliament, the European Commission and the Council. How do you assess your cooperation with these institutions and what could make this dialogue even more effective?
To ensure that economic and social progress go hand in hand, it is important to increase productivity and employment at the same time. For decades, EU Member States have failed to do this. When hourly productivity increased, the number of hours worked per capita decreased. As a result, the EU's GDP per capita has stagnated at 70% of that of the US over the past 30 years.
Addressing this vulnerability is essential to strengthen our economy and to our ability to respond to the security, demographic, green and digital transitions that Europe is facing.
BusinessEurope engages in a bilateral dialogue with the European Trade Union Confederation and, in this social dialogue at EU level, our aim is to ensure that the actions of the social partners contribute to improving the functioning of labour markets across Europe.
As part of our activity to represent our positions to the European Parliament, the European Commission and the Council, we also defend the autonomy of the social partners' negotiations in the Member States. For example, BusinessEurope supports the introduction of a presumption of conformity for companies that respect collective agreements in the recently adopted European Pay Transparency Directive. We fully support the gender equality objectives pursued, but the provisions of the directive are unduly burdensome. It would be logical to introduce a presumption of conformity for companies that respect collective agreements, given that the classification of jobs established through collective agreements is based, in most cases, on objective and gender-neutral criteria.
Relations with the Federation of Employers and Industrialists
–How would you describe BusinessEurope's relationship with the employers' organizations in Cyprus, which are part of your network? In what ways do they contribute to your collective work?
OEB plays a crucial role, both within BusinessEurope and in our contacts with key partners, both at EU and national level. She, along with all our national federations, provides a unique insight into how businesses are doing on the ground and how businesses in Cyprus are affected by decisions taken at EU level.
The technical expertise of our staff and members, combined with clear and strong political messages, makes us particularly effective in shaping the political debate and the policies themselves.
