Davos: CEO of Ernst & Young says that if Europe continues to prioritize competitive development, it will eventually catch up.

Janet Truncale, Chairman and Chief Executive Officer of EY Global, said in an interview with CNBC at the World Economic Forum in Davos, Switzerland, that Europe is increasingly prioritizing competition and considering loosening regulations, which will boost business confidence on the continent. She said, "They are facing many challenges in Europe, but I also see that they are very focused on competition, ensuring that they are considering relaxing regulations to improve competitiveness." Truncale noted that many executives are seeking predictability in the face of macro uncertainty, with 90% of the CEOs they work with prioritizing geopolitical issues and planning for multiple scenarios. She said that in about a year, Europe will have more confidence, bringing it back to a level comparable to other regions in the world. In the meantime, Truncale said that she had expressed concerns about Europe's business competitiveness last year at Davos.