Europe’s Moment to Rebuild for Growth
Europe’s prosperity has long relied on shared systems of energy, transport, and digital connectivity. Those systems now need renewal. Energy costs remain twice as high as in the US, climate events caused €50 billion in damages last year, and productivity growth has slowed.
But the foundations for renewal are strong. Europe’s green-technology leadership, cross-border integration, and proven industrial capabilities offer a clear platform for acceleration. By modernizing infrastructure, Europe can boost competitiveness, reduce dependencies, and anchor the next era of sustainable growth.
Europe’s infrastructure must become its competitive backbone; enabling growth, sustainability, and resilience for decades to come.
—BCG & Dansk Industri, 2025
Infrastructure: The Backbone of Europe’s Future
Modern infrastructure delivers impact across three dimensions:
- Competitiveness: Each euro invested yields up to €2.1 in returns, supporting €20 trillion in additional GDP and €2,000 more output per citizen per year by 2040.
- Sustainability: More than half of required emission reductions depend on infrastructure build-out, enabling 70 percent of the 2040 climate target.
- Resilience: Stronger systems can cut gas imports by two-thirds, stabilize energy prices, and lower annual climate damages by €50 billion.
The €12 Trillion Investment Imperative
Meeting Europe’s ambitions requires roughly €800 billion per year (3.5 % of GDP), more than double historic levels. Energy (€5.5 T) and buildings (€3.6 T) dominate total needs, followed by transport (€1 T), information and telecom (€0.7 T), and nature and resources (€0.2 T).
Accelerating delivery is as critical as mobilizing capital. EV-charging networks must expand 6× faster, data-center capacity 5×, and grids and retrofits 2× to meet targets.
Unlocking Europe’s Delivery Potential
Progress is underway across many sectors, yet Europe can achieve far more by improving coordination and execution. Projects today overrun budgets by ~30 percent and face lengthy permitting processes.
By addressing two key areas; cyclical pressures (cost inflation, skills shortages, supply constraints) and systemic barriers (fragmented regulation, limited private-capital channels), Europe can scale up faster and more efficiently.
With stronger alignment between governments, investors, and industry, infrastructure delivery can shift from constraint to competitive advantage.
A New Paradigm for European Infrastructure
Europe can move from fragmented national projects to a coordinated continental backbone. Five priorities will define success:
- Prioritize European impact. Focus on cross-border projects; grids, interconnectors, hydrogen corridors, and data hubs.
- Ensure transparency and predictability. Streamline approvals and provide clear, long-term investment plans.
- Accelerate delivery. Build resilient supply chains, expand skilled talent, and improve project governance.
- Mobilize private capital. Unlock €1.4 trillion through public-private partnerships and de-risking frameworks.
- Enable interoperability. Connect energy, transport, and digital systems for seamless cross-border flows.
The Opportunity to Act Now
Momentum is building. From the Nordics’ green leadership to growing EU-wide coalitions, Europe is proving how investment in modern infrastructure can turn sustainability into competitiveness.
The task ahead is clear: align ambition, mobilize capital, and deliver at scale. Doing so will strengthen Europe’s industrial base, secure energy independence, and build resilience for generations to come.
