According to the Boston Consulting Group, one-sixth of Western European companies are under financial pressure, and rising leverage makes companies more vulnerable to all kinds of shocks. In a report analyzing about 1,700 European listed companies, Boston Consulting found that Spain and Portugal are facing the most prominent pressure, with 22% of companies in the two regions needing to carry out business transformation. The share of companies in need of transformation across Europe rose from 14.3% last year to 16.2%. France and the DACH region, which includes Germany, Austria, and Switzerland, account for the highest share of companies facing heavy financial pressure or restructuring pressure, with 10% in both places. The net debt/profit before interest, tax, depreciation and amortization measure of overall debt levels increased 22% between 2022 and 2025. Nearly one-third of companies tripled that ratio at the beginning of 2026, and Boston Consulting sees this figure as a critical line of financial pressure. Many companies borrowed heavily in low-cost debt during the pandemic, and now it is difficult to reduce leverage. This has reduced the ability of companies to withstand the environmental impact of soaring energy costs, trade disruptions, and long-term high interest rates.

According to the Boston Consulting Group, one-sixth of Western European companies are under financial pressure, and rising leverage makes companies more vulnerable to all kinds of shocks. In a report analyzing about 1,700 European listed companies, Boston Consulting found that Spain and Portugal are facing the most prominent pressure, with 22% of companies in the two regions needing to carry out business transformation. The share of companies in need of transformation across Europe rose from 14.3% last year to 16.2%. France and the DACH region, which includes Germany, Austria, and Switzerland, account for the highest share of companies facing heavy financial pressure or restructuring pressure, with 10% in both places. The net debt/profit before interest, tax, depreciation and amortization measure of overall debt levels increased 22% between 2022 and 2025. Nearly one-third of companies tripled that ratio at the beginning of 2026, and Boston Consulting sees this figure as a critical line of financial pressure. Many companies borrowed heavily in low-cost debt during the pandemic, and now it is difficult to reduce leverage. This has reduced the ability of companies to withstand the environmental impact of soaring energy costs, trade disruptions, and long-term high interest rates.