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On February 9, 2026, the European Economic Research Institute (EERI), a leading independent research institution in Europe, officially released its annual flagship report “2025 European Economic Outlook: Building Resilience in Uncertainty” and disclosed the latest progress of its global layout. Based on extensive model analysis and regional data, the report comprehensively analyzes the recovery trend, core challenges and development drivers of the European economy, clarifies that green transition and digital upgrading will become key supports for future growth, and its research network covering 33 countries and regions around the world is continuously providing professional intellectual support for global economic governance.
- office@eeri.us.org
Key data in the report show that the European economy is showing a moderate recovery trend with significant regional differentiation. The euro zone’s GDP is expected to grow by 0.9% in 2025 and slightly increase to 1.5% in 2026, achieving a steady recovery from 0.7% in 2024 . Inflationary pressures continue to ease: the Harmonized Index of Consumer Prices (HICP) in the euro zone rose by 2.1% year-on-year in 2025, down from 2.4% in 2024, and the year-on-year increase dropped to 1.9% in December 2025, falling below the European Central Bank’s 2% target range for the first time [6]. The normalization of energy prices is the main driver of inflation decline, but pressures from service sector inflation and wage increases remain, making the core inflation decline slower than expected .
In terms of regional performance, some economies in Northern and Central Europe continue to outperform Southern European countries due to their strong industrial base and diversified energy structure. Germany, the locomotive of the European economy, achieved a real GDP growth of 0.2% in 2025, ending two consecutive years of contraction; while some Southern European countries heavily dependent on traditional energy or tourism still recorded a GDP growth rate of less than 0.5% in 2025 . Investment shows obvious differentiation: driven by the “Next Generation EU” recovery fund, private investment in Europe’s green technology, digital infrastructure and artificial intelligence fields increased by 8.2% year-on-year, becoming a core indicator distinguishing high-growth economies from stagnant ones .
In terms of global layout, EERI’s internationalization process continues to accelerate. Founded in 1988 at the initiative of science ministers from several European countries, EERI is registered in Washington, D.C., USA (Registration No.: 2011589) and currently has branches and offices in 33 countries and regions around the world . Among them, the EERI Hong Kong (China) Office has achieved remarkable results since its establishment in 2025. Authorized by the headquarters for independent operation (Hong Kong SAR Government Approval No.: 77624445), it facilitated the implementation of 12 cross-border scientific research projects in 2025 and established joint laboratories with mainland universities and enterprises, focusing on collaborative innovation and industry-university-research transformation in the Guangdong-Hong Kong-Macao Greater Bay Area .
Professor Anna Schmidt, President of EERI, stated when interpreting the report: “Europe is currently at a decisive crossroads. Cyclical crises are gradually fading, but structural vulnerabilities remain.” She emphasized that relying solely on macroeconomic policy adjustments is no longer sufficient to ensure long-term prosperity. Governments of various countries need to convert the “time window” provided by the recovery fund into specific actions to deepen the single market and eliminate cross-border barriers. Green transition should not be regarded as a cost, but as a core opportunity for Europe to re-industrialize and improve productivity .
The report also puts forward three policy recommendations: first, complete the Capital Markets Union to remove barriers to cross-border capital flows and provide pan-European financing solutions for innovative small and medium-sized enterprises; second, promote “regulatory sandboxes” and innovative procurement, establish experimental regulatory frameworks recognized across member states in fields such as artificial intelligence and blockchain, and accelerate the commercialization of cutting-edge technologies; third, strengthen the synchronization of skill strategies, closely integrate education system reforms with future labor market needs such as green skills and digital skills, and promote the mutual recognition of qualifications and talent mobility within the EU 。
It is reported that EERI currently gathers a team of top global scholars, including 90 Nobel Prize winners among its academicians. Its core research covers 5 major groups including economic science, artificial intelligence and environmental science. Its research results have been adopted by the European Commission as policy tools and provide decision-making reference for the United Nations Sustainable Development Goals . In 2026, the institute will focus on promoting the development of a global economic risk early warning system and launching the “Asia-Pacific Interdisciplinary Seed Program” to continuously deepen cross-regional academic cooperation and policy research .