European Corporations' Profit Distribution Sparks Economic Concerns, Study Finds

A new study by economist Mariana Mazzucato and her team examined the 300 largest non‑financial companies in Europe, which together generate about 40 % of the EU’s gross domestic product. The analysis of data from 2000‑2024 shows that the share of net investment in total profit fell sharply from 18.9 % to 7.4 %. At the same time, dividends and share buybacks to shareholders rose from 27 % to 68 % of profit, while corporate profit increased by 151 % and average employee wages grew only 87 %.

The research also found that 69 % of firms that carried out restructurings and layoffs continued to pay dividends, and European states have provided roughly €3.5 trillion in public support to these companies. ETUC General Secretary Esther Lynch warned that “the biggest European firms have impoverished our economy, then blamed workers, demanding lower wages and poorer conditions to cover their damage,” calling for a shift toward quality jobs, higher investment and productivity rather than cost‑cutting at the expense of employees.