Geopolitics will continue to be inseparable from business planning in 2026. Policy volatility, long-term shifts in alliances, the possibility of conflicts, and how to think about AI will all affect strategic priorities—and, ultimately, investment decisions.

That is the backdrop for European CEOs this year. In The Conference Board’s latest C-Suite Outlook (Europe edition), leaders describe uncertainty as a dominant challenge. But the message of our report is not ‘business paralysis’.

Starting with the challenges: CEOs point to a more interventionist policy mix—regulation, protectionism and industrial policy—as a growing source of complexity at home, and a potential trigger for similar responses abroad, raising business continuity risks.

Trade and energy uncertainty also loom larger in Europe than elsewhere in the world. CEOs worry that tariffs will translate into price hikes, smaller profit margins and lower profits. Fresh supply chain disruptions could disrupt energy imports and distort production output, while more protectionist policies elsewhere could restrict access to critical manufacturing inputs.

Domestically, they see homegrown frictions compounding these shocks. Compliance obligations, from AI to supply chain due diligence and carbon reporting, are rising, while fragmented implementation across member states can slow execution, stretch permitting cycles, and add costs. Meanwhile, national politics add another layer of uncertainty, with France’s hung parliament showcasing how budget deadlocks can turn corporate taxes into moving targets and how quickly the policy baseline can move.

Taken together, uncertainty abroad and fragmentation and political volatility at home mean CEOs in Europe are entering 2026 clear-eyed about risk. Yet, their response is caution, not inaction. Instead, there is a tangible shift from diagnosis to execution. Leaders are accelerating investment and adaptation where they have control, while building headroom—operationally, financially, and through tighter risk oversight—to stay flexible if conditions worsen. In other words, they are pursuing growth to stay competitive, while putting guardrails in place to manage risk and avoid costly missteps.

Here are five practical strategies of their growth agenda in 2026:

1. More Europe, without becoming too inward-looking: Executives keep Europe as the anchor for expansion, but the “European” strategy is not just geography—it’s making the home market work better. That’s why they put more weight on distribution channels (for example, cross-border logistics and distribution networks, partnerships for greater market access, and so on) as a practical response to internal frictions and a still incomplete single market that continues to behave like a tax on scale.

At the same time, they keep a global posture. Western Europe comes first, and the US is the second-most attractive destination for expanding operations in 2026, even with policy volatility. Beyond that, they selectively lean into corridors that offer both growth and strategic relevance, such as the Middle East and parts of Asia. Their presence in these markets is increasingly tied to access, partnerships and security of supply, not just sales.

2. More AI, without blind execution: CEOs see artificial intelligence as a central productivity and innovation lever, and they are trying to “build it to last”. They recognise the reality of skills shortages and a lack of qualified workers, so they’re focused on the foundations: building expertise, improving data quality, strengthening measurement of ROI, and shaping workforce culture so adoption is safe and consistent with scale. And all this, while also emphasizing infrastructure readiness, linked to data-centred performance, as a critical enabler of effective AI deployment in the year ahead.

3. More resilience, without retreating from global value chains: Leaders are not equating resilience with reshoring. They are re-engineering exposure through better digital visibility, supplier diversification, and more reliable service performance—staying connected, but on more robust terms. They also remain pragmatic on China: the goal is to de-risk, not fully decouple, given Beijing’s role in Europe’s critical inputs and industrial supply chains. Resilience extends beyond logistics to cyber risk and operational continuity.

4. More sustainability, without treating it as a side agenda: Executives in Europe treat sustainability not as a re-branding exercise, but as a pathway to greater operating resilience. Circularity and waste reduction, more efficient use of key inputs like energy and water, and investment in clean/green technology are now viewed as concrete business strategies to protect inputs, reduce exposure to cost spikes and strengthen energy security and continuity. This stands in sharp contrast to their US colleagues, who do not view sustainability as a priority, according to the survey.

5. More financial flexibility, without financial manoeuvring. In times of uncertainty, businesses require higher levels of liquidity and ability to survive shocks. In this context, CEOs prioritise planning, liquidity buffers and flexible funding to operate in a low-visibly environment and to keep investing in green/digital initiatives and supply-chain hardening, even when profits are under pressure. They place less weight on tactics such as creative balance-sheet manoeuvring and more on enterprise risk management and strategic planning.

To sum up, European CEOs enter 2026 facing a difficult mix of pressure points, both externally and internally. Yet our survey suggests they are not stepping back. They are leaning into investment, adaptation, and resilience—with guardrails that keep execution disciplined and miscalculations contained.

But the policy implementation is equally important and practical. A simpler, more predictable Europe, with less regulatory duplication, faster permitting and more consistent implementation across the single market, would help companies convert today’s resilience-building into sustained investment and productivity gains.

That will not resolve geopolitics. But it can strengthen European businesses’ ability to compete through it.

Konstantinos Panitsas is an economist with The Conference Board.