Springboard Conference: Europe’s ‘Storms’ and Crises Shouldn’t Deter Investors 

Neither rampant inflation and sliding currencies, nor a war and a looming energy crisis — even coming on the back of a pandemic — could dampen the spirits of investment boosters in Atlanta focused on opportunities in Europe last week. 

In fact, with the Federal Reserve’s tightening of monetary policy leading to the strongest dollar in decades versus the euro and the British pound, the continent is on sale both for tourists and those interested in European deals. 

That was the sentiment of diplomats and economic development reps at an in-person return of the Springboard to Europe symposium held at the Midtown offices of Frazier & Deeter, an accounting firm

They weren’t exactly placing their heads in the sand, but speakers representing governments from some of Western Europe’s largest economies chose a constructive approach, focusing on their links to Georgia and the Southeast and outlining how their countries might be the best fit for firms navigating the uncertain waters of the global economy.

They also sought to showcase the many agencies and resources — both local to Atlanta and in their respective locales — that can help companies in pharma, fintech, film and beyond that are taking steps into their markets, especially to regions that are not well-known to U.S. investors. 

Irish Consul General Caoimhe Ni Chonchuir said Europe has made key strides in safeguarding its single market, particularly after the shocks of the global financial crisis of 2008, Brexit in 2016 and now COVID-19. 

“The effect of all of these interlocking crises has been a recognition that the transatlantic trade relationship is more important than ever,” Ms. Ni Chonchuir said. “So in many ways, I feel now is the time to invest in Europe, to invest in stable and resilient economies.” 

She praised Europe’s responses to crises — from political uncertainty to the fiscal disagreements — that have at times threatened the viability of the European experiment. The war in Ukraine is simply forcing the latest pivot, she said. 

“We’ve seen very ambitious green transition planning to counteract the effects of these energy shocks. You’ve also seen a very a lot of solidarity in responding to Ukraine … Actually, the experience of the past months has only enhanced the value proposition of Europe to the United States.” 

Though many warn of a frigid winter of shortages set to affect both households and companies, France’s new consul general, Anne-Laure Desjonquères, said that the energy crisis caused by the Russian invasion of Ukraine is accelerating the green-energy transition in the country that hosted the landmark Paris Climate Accords. 

In France, whose ample nuclear power has helped it blunt some of the impacts of high natural gas prices and limited supplies from Russia, a new plan allocates tens of billions of dollars toward ambitious targets on hydrogen, electric vehicles and greenhouse gas reductions by 2030.  

“Crisis is an accelerator of change and we should see that as an opportunity,” Ms. Desjonquères said. 

Michel Gerebtzoff, the Belgian consul general, said the last two years of uncertainty have marked a shift away from just-in-time supply chains, particularly in sensitive sectors. That is leading to record foreign-investment figures in both Europe and the U.S. as companies set up production plants to deal with increased regulation and the need for more decentralized distribution networks.  

“We see companies hedging their bets, multiplying their centers for (research and development) and production,” Mr. Gerebtzoff said. 

He added that politics has returned to trade, with export controls and investment screening becoming facts of daily life for companies  sending goods and services across borders. The U.S. and Europe should seize the opportunity provided by their alliance to harmonize some regulations to make it simpler for small companies to engage in trade. 

Even as some dealmakers warned that transatlantic mergers could be drying up, German Consul General Melanie Moltmann said that Gemran companies continue to be active on the manufacturing (especially automotive) and food fronts. 

The weak euro, which has dipped below parity with the dollar this week, is a “problem” but it also provides opportunities for exporters in Germany, which still relies heavily on foreign purchases of its machinery and other goods.

Switzerland, said Consul General Urs Broennimann, is aiming to be a “reliable partner” both for the EU and the U.S. during this time of uncertainty. The alpine nation of 9 million people, vaunted for its neutrality as much as its precision manufacturing, has made waves by signing on to the EU’s financial sanctions on Russia. Mr. Broennimann asserted that Switzerland can remain militarily neutral while its political leaders ensure its banking system is not used to support Russia’s war effort. 

Dan Bangser, a New York-based representative of the Swiss Business Hub USA, which also has an Atlanta office, said Switzerland is “not only an island of neutrality but also an island of stability” — boring in the best possible way but innovative when it comes to regulatory and tax policy. 

“For companies that want to reduce the risk of investing abroad it’s a pretty good place to hedge your bets,” he said touting a 13 percent average tax rate and a set of tax authorities that will meet with investment prospects before they set down roots and sign a binding tax document that gives them predictability in future operations. 

Mr. Bangser was among the representatives of trade and investment agencies on a second panel moderated by Arnall Golden Gregory LLP attorney Tycho Stahl to set out the nuts and bolts of each place’s investment assistance.

Other participating agencies included IDA Ireland, the Netherlands Foreign Investment Agency, the U.K. Department for International Trade, NRW.Global Business from the German state of North-Rhine Westphalia and Business France. 

A third panel led by Adam Bradley of U.K. law firm Taylor Vinters looked at the implications of trading with the EU in a post-Brexit world. 

See the full agenda and list of speakers here.