What is Roland Berger’s European Future Readiness Index?

It is a cross-country benchmark that tracks progress in areas like human capital, resilience, sustainability, infrastructure, digital competitiveness, and institutional quality. The latest read points to improving momentum in four of these pillars, while digital and institutional factors lag. Investors can use it as a guide to where growth and reforms may accelerate.

Why does McKinsey see a €1.2 trillion annual investment gap?

McKinsey estimates Europe needs about €1.2 trillion per year for five years to fund higher defense outlays and key upgrades in grids, rail, digital infrastructure, and industrial capacity. The goal is to lift productivity and security. The figure reflects both public and private capital that must be mobilized together.

Which sectors in Germany could benefit first?

Likely early beneficiaries are grid equipment, maintenance-heavy infrastructure, and cybersecurity. Over time, rail systems, industrial automation, semiconductors, and defense-adjacent suppliers may see larger orders. Returns will depend on permitting speed, procurement clarity, and execution. Companies with healthy backlogs and strong balance sheets should be better placed to capture these flows.

What are the main risks to the EU upswing thesis?

Delays in permitting and procurement, fragmented regulations, or budget shortfalls could slow projects. Input cost spikes might pressure margins. If digital reforms stall, productivity gains may disappoint. Investors should size positions carefully, diversify across themes, and monitor policy milestones, tender pipelines, and company order intake for confirmation.

Global Market Insights

January 22: Roland Berger Sees EU Upswing as McKinsey Flags €1.2T Gap

ByDanny Kontos January 22, 2026January 22, 2026

Roland Berger’s European Future Readiness Index, discussed at WEF Davos 2026, points to an EU upswing in human capital, resilience, sustainability, and infrastructure. Yet digital capabilities and institutional quality still hold back EU competitiveness. At the same time, McKinsey estimates Europe needs about €1.2 trillion per year in public–private investment over five years, driven by defense and critical infrastructure. We explain what this means for German portfolios, the policy signals to track, and how to position for Europe’s next phase.