White paper : Confidence of legal directors in Europe

ADVANT has published the results of a study conducted among more than 800 legal directors in Europe and the United States on the economic, commercial, and legal opportunities offered by Europe as a strategic territory for investment and growth for international companies in 2026 and beyond..

What is Europe's place on the world stage today, how can it remain a key player, and where are the best opportunities for it to shine?

Contrary to what might be perceived at first glance, business confidence in the prospects for investment and development in Europe remains high, despite recent economic and geopolitical turmoil.

This is revealed in a study conducted by ADVANT member law firms among more than 800 General Counsel (GCs) in France, Germany, Italy, and the United States.

Europe perceived as attractive and strategic

• 82% of GCs believe that continental Europe is an attractive territory for investment and business growth.
• 66% indicate that their organization has increased its focus on Europe in light of recent geopolitical and regulatory risks.
• 83% anticipate expansion or new investments in existing European markets within the next three to five years.
• 82% are considering entering new markets within the region.

Notably, US general counsel are even more confident than their European counterparts.

87% of US GCs believe that Europe will benefit from an expansion of international business in the coming years, compared to 69% in Italy, 71% in France, and 76% in Germany.

“The European Union is in an enviable position: it is one of the world's largest economies, a major producer and exporter of goods and services, and has a legal and regulatory framework that is recognized for its stability and reliability,” says Gilles Gaillard, partner at ADVANT Altana in Paris.

"Recent geopolitical and economic turmoil has reinforced Europe's attractiveness as a resilient investment territory. This perception is clearly reflected in the vision of legal directors, who play a central role in the strategic preparation and adaptation of companies: “Europe remains a major center of attraction for international investors, and France occupies a strategic position of prime importance,” adds Gilles Gaillard, partner at ADVANT Altana.

"Thanks to its solid legal framework, the depth of its market, and its capacity for innovation, our country offers an environment that is both secure and conducive to growth. For foreign investors, Europe, and France in particular, are not just markets of opportunity: they are territories of stability and long-term projection in a constantly changing world. "

Regulatory simplification: a strategic priority

The study also highlights several areas for improvement to strengthen European competitiveness.

• Among their five priorities, GCs place simplification and harmonization of trade rules at the top (20%) as the absolute priority for increasing the attractiveness of the EU.
• This is followed by 16% who cite increased tax incentives.
• And then 15% cited support for innovation as a key lever.

While the European legal framework is widely praised for its stability, 12% of respondents believe that regulators do not fully understand the operational realities of businesses, and less than a quarter (24%) say they are very confident in this regard (this proportion falls to 14% in France).

" The EU has set clear objectives to strengthen its competitiveness by simplifying regulations and further aligning European and national policies. It remains to be seen whether these measures will be sufficient and implemented quickly enough,“ explains Dr. Christian von Wistinghausen, partner at ADVANT Beiten. ”The volume and increasing complexity of regulations could put European companies at a disadvantage compared to more flexible jurisdictions. “

”Europe has solid assets, despite economic and geopolitical headwinds,“ concludes Guido Fauda, partner at ADVANT Nctm. ”It must continue its efforts towards greater productivity and competitiveness to demonstrate that it remains fully open to international investment.

AI and cybersecurity: critical issues

Artificial intelligence (41%) and cybersecurity (38%) appear at the top of the three major regulatory priorities ahead of taxation (34%) over a three- to five-year horizon. Forty-two percent consider AI and cybersecurity to be major strategic issues for their legal teams. This figure rises to 54% for French respondents.

Noteworthy: in France, nearly half (45%) of legal directors believe that AI requires urgent legal or regulatory attention or reform at the European level, compared to about one-third of Italian and German legal directors (36% and 34%, respectively).

Technological innovation is also becoming a differentiating factor in the choice of law firms:

• 36% say that the use of technology (including AI) is a determining factor in the selection of external legal counsel.
• Thirty-six percent would like to see greater use of data analysis (fees, performance, case management).

Notably, this seems to be less important to French legal directors, with only 30% of them stating that technology and innovation are a differentiating factor.

“This study confirms the growing role of GCs in the value chain as advisors at the highest level of the company on major strategic and operational issues, particularly their ability to help their organizations and their own teams reduce risk, ensure compliance, and leverage the potential of new technologies,” emphasizes Gilles Gaillard, partner at ADVANT Altana.

What today's general counsel look for in their external legal advisors

The choice of external legal service providers is essential for legal departments, and law firms headquartered in Europe are generally considered more capable of meeting the needs of companies in Europe than those based in the United States or the United Kingdom (89%, rising to 95% in the United States). Their use of technology could be another key competitive differentiator (use of AI, analysis of fee, case, and performance data).