Europe
As a continent, the economy of Europe is currently the largest on Earth and it is the richest region as measured by assets under management with over $32.7 trillion compared to North America’s $27.1 trillion. Europe remains the wealthiest region. Its $37.1 trillion in assets under management represented one-third of the world’s wealth. It was one of several regions where wealth surpassed its pre-crisis year-end peak. As with other continents, Europe has a large variation of wealth among its countries. The richer states tend to be in the West; some of the Eastern economies are still emerging from the collapse of the Soviet Union and Yugoslavia. The European Union, an intergovernmental body composed of 27 European states, comprises the largest single economic area in the world. 16 EU countries share the Euro as a common currency. Five European countries rank in the top ten of the world’s largest national economies in GDP (PPP). This includes: Germany (5), the UK (6), Russia (7), France (8), and Italy (10). There is huge disparity between many European countries in terms of their income. The richest in terms of GDP per capita is Monaco with its US$172,676 per capita and the poorest is Moldova with its GDP per capita of US$1,631. Monaco is the richest country in terms of GDP per capita in the world according to the World Bank report.
London, United Kingdom
London generates approximately 20 per cent of the UK’s GDP (or $446 billion); while the economy of the London metropolitan area – the largest in Europe – generates approximately 30 per cent of the UK’s GDP (or an estimated $669 billion). London is one of the pre-eminent financial centres of the world and vies with New York City as the most important location for international finance. London’s largest industry is finance, and its financial exports make it a large contributor to the UK’s balance of payments. Around 325,000 people are employed in financial services in London. London has over 480 overseas banks, more than any other city in the world. Over 85% (3.2 million) of the employed population of greater London works in the services industries. The City of London is home to the Bank of England, London Stock Exchange, and Lloyd’s of London insurance market. Over half of the UK’s top 100 listed companies (the FTSE 100) and over 100 of Europe’s 500 largest companies have their headquarters in central London. Over 70 per cent of the FTSE 100 are within London’s metropolitan area, and 75 per cent of Fortune 500 companies have offices in London.
Paris, France
The Paris Region is France’s premier centre of economic activity, and with a GDP of €607 billion (US$845 billion), it is not only the wealthiest area of France, but has one of the highest GDPs in the world, after Tokyo, New York, Los Angeles, Seoul and London making it an engine of the global economy. Were it a country, it would rank as the seventeenth-largest economy in the world, larger than the Turkish and Dutch economies and almost as large as Indonesia’s. While its population accounts for 18.8 percent of the total population of metropolitan France, its GDP accounts for 31.0 per cent of metropolitan France’s GDP. Wealth is heavily concentrated in the western suburbs of Paris, notably Neuilly-sur-Seine, one of the wealthiest areas of France. This mirrors a sharp political divide, with political conservatism being much more common towards the western edge, whilst the political spectrum lies more to the left in the east. The Parisian economy has been gradually shifting towards high-value-added service industries (finance, IT services, etc.) and high-tech manufacturing (electronics, optics, aerospace, etc.). However, in the European Green City Index, Paris was still listed as the second most”green” large city in Europe, after Berlin. While the Paris economy is largely dominated by services, it remains an important manufacturing powerhouse of Europe, especially in industrial sectors such as automobiles, aeronautics, and electronics. The Paris Region hosts the headquarters of 30 of the Fortune Global 500 companies.
Lyon, France
The GDP of Lyon is 62 billion euro, and the city is the second richest city after Paris. Lyon and its region Rhône-Alpes represent one of the most important economies in Europe and can be compared to Philadelphia, Mumbai or Athens concerning its international position. Lyon is the 14th favorite city in the European Union concerning the creation of companies and investments. High-tech industries like biotechnology, software development, game design, and internet services are also growing. Other important sectors include medical research and technology, non-profit institutions, and universities. The city is the headquarters of many companies like Euronews; Lyon Airports; BioMérieux; Sanofi Pasteur; LCL S.A.; Cegid Group; Boiron; Infogrames; Groupe SEB; Renault Trucks; Irisbus; LVL Medical, GL Events; Compagnie Nationale du Rhône; and intergovernmental agencies IARC. The worldwide headquarters of Interpol is located there. The district of Confluence, in the south of the historic centre, is a new pole of economical and cultural development.
Berlin, Germany
The nominal GDP of the city state Berlin totaled €90.1 (~$117) billion. Berlin’s economy is dominated by the service sector, with around 80% of all companies doing business in services. Fast-growing economic sectors in Berlin include communications, life sciences, and transportation particularly services that use information and communication technologies, as well as media and music, advertising and design, biotechnology, environmental services, and medical engineering. The Science and Business Park of Berlin-Adlershof is among the 15 largest technology parks worldwide. Research and development have high economic significance for the city, and the Berlin-Brandenburg region ranks among the top-three innovative regions in the EU. Many German and international companies have business or service centers in the city. For years Berlin is recognized as a centre of business startup in Europe. Among the 20 largest employers in Berlin are the Deutsche Bahn, the hospital provider, Charité, the local public transport provider, BVG, and the service provider, Dussmann and the Piepenbrock Group. Daimler manufactures cars, and BMW builds motorcycles in Berlin. Bayer Health Care and Berlin Chemie are major pharmaceutical companies headquartered in the city. The second largest German airline Air Berlin is also headquartered in Berlin. Siemens, a Fortune Global 500 company and one of the 30 German DAX companies, is headquartered in Berlin. The national railway operator, Deutsche Bahn, has its headquarters in Berlin as well. Berlin has a cluster of rail technology companies and is headquarter or site to Bombardier Transportation, Siemens Mobility, Stadler Rail and Thales Transportation.
Munich, Germany
Munich has the strongest economy of any German city and the lowest unemployment rate of any German city. The city is also the economic centre of southern Germany. Munich is considered a global city and holds the headquarters of Siemens AG (electronics), BMW (car), MAN AG (truck manufacturer, engineering), Linde (gases), Allianz (insurance), Munich Re (re-insurance), and Rohde & Schwarz (electronics). The breakdown by cities proper (not metropolitan areas) of Global 500 cities listed Munich in 8th position. Munich is a centre for biotechnology, software and other service industries. Munich is also the home of the headquarters of many other large companies such as the aircraft engine manufacturer MTU Aero Engines, the injection molding machine manufacturer Krauss-Maffei, the camera and lighting manufacturer Arri, the semiconductor firm Infineon Technologies (headquartered in the suburban town of Neubiberg), lighting giant Osram, as well as the German or European headquarters of many foreign companies such as McDonald’s and Microsoft. Munich has significance as a financial centre (second only to Frankfurt), being home of HypoVereinsbank and the Bayerische Landesbank. It outranks Frankfurt though as home of insurance companies.
Brussels, Belgium
Serving as the centre of administration for Europe, Brussels’ economy is largely service-oriented. It is dominated by regional and world headquarters of multinationals, by European institutions, by various administrations, and by related services, though it does have a number of notable craft industries, such as the Cantillon Brewery and the Lambic brewery.
Madrid, Spain
Madrid is a major centre for international business and commerce. It is one of Europe’s largest financial centres and the largest in Spain. Madrid has become the 23rd richest city in the world and third richest in Europe in terms of absolute GDP; behind the considerably larger cities of Paris and London and ahead of Moscow and Barcelona. Additionally in terms of GDP per capita, the Madrid region is the richest in Spain and one of the richest in Europe. Madrid is a global financial leader, rising to the top five Centres of Commerce in Europe. Madrid continues its upward trajectory as a key European city, rising to number 11 globally and to the number 5 spot in Europe. Madrid’s stable GDP, exchange rate and strong bond market, coupled with a high standard of living, place this city in the company of Europe’s most prominent cities: London, Paris, Frankfurt and Amsterdam.
Barcelona, Spain
The Barcelona metropolitan area comprises over 66% of the people in one of the richest regions in Europe – Catalonia, with a GDP per capita amounting to 16% more than the EU average. The Barcelona metropolitan area had a GDP amounting to 44% more than the EU average making it the 4th economically powerful city by GDP in the European Union and 35th in the world. Furthermore, Barcelona is Europe’s fourth best business city and fastest improving European city. Barcelona is the 14th most”livable city” in the world according to lifestyle magazine Monocle. Barcelona has a long-standing mercantile tradition. Less well known is that the region was one of the earliest to begin industrialization in continental Europe, beginning with textile-related works. Since then, manufacturing has played a large role in its history.
Rome, Italy
Being the capital city of Italy, Rome hosts all the principal institutions of the nation, like the Presidency of the Republic, the government (and its single Ministeri), the Parliament, the main judicial Courts, and the diplomatic representatives of all the countries for the states of Italy and the Vatican City (curiously, Rome also hosts, in the Italian part of its territory, the Embassy of Italy for the Vatican City, a unique case of an Embassy within the boundaries of its own country). Many international institutions are located in Rome, notably cultural and scientific ones – such as the American Institute, the British School, the French Academy, the Scandinavian Institutes, the German Archaeological Institute – for the honour of scholarship in the Eternal City, and Specialized Agencies of the United Nations, such as the FAO. Rome, also hosts major international and worldwide political and cultural organisations, such as the International Fund for Agricultural Development (IFAD), World Food Programme (WFP), the NATO Defence College and ICCROM, the International Center for the Study of the Preservation and Restoration of Cultural Property. Although the economy of Rome is characterized by the absence of heavy industry and it is largely dominated by services, high-technology companies (IT, aerospace, defence, telecommunications), research, construction and commercial activities (especially banking), and the huge development of tourism are very dynamic and extremely important to its economy. Rome’s international airport, Fiumicino, is the largest in Italy, and the city hosts the head offices of the vast majority of the major Italian companies, as well as the headquarters of three of the world’s 100 largest companies: Enel, Eni, and Telecom Italia.