Europe needs greater political stability, EY says

FILE PHOTO: A woman carries a banner with lettering 'Europe stay colorful' during a demonstration against right-wing extremism and for the protection of democracy ahead of the European Parliament elections, near the Victory Column in Berlin, Germany, June 8, 2024. REUTERS/Annegret Hilse/File Photo

FRANKFURT (Reuters) - Europe must foster greater political stability, cut red tape and reduce energy price volatility to reverse a declining trend in foreign investment, consulting firm EY said on Wednesday based on a survey of business leaders.

Europe has struggled economically for years on surging prices and the fallout from Russia's war in Ukraine, fuelling populist sentiment that has lifted the far right in European Parliamentary elections and prompted French President Emmanuel Macron to call a snap national election.