The old continent is currently experiencing a sense of unease as innovative, cost-effective Chinese producers are challenging Europe’s established industries and causing concern among policymakers. Europe has not been a major player in the technological revolution, with the market value of America’s top tech companies overshadowing the combined stock market capitalization of the EU’s 27 member states.
In a recent interview, President Emmanuel Macron highlighted the importance of economic prosperity and technological sovereignty for a country to be considered a great power. However, he noted that Europe does not generate enough wealth per capita and lacks attractiveness for investment and innovation. To address this issue, Europe must focus on becoming a more appealing destination for investment and innovation, which requires substantial capital and an efficient financial system that can allocate savings to promising opportunities across the continent.
One major obstacle in Europe’s path to economic growth is the inefficiency and limitations imposed by national borders in its financial sector. It is crucial for Europe to push forward with reforms in banking and capital markets to overcome these challenges. By doing so, Europe can create a more conducive environment for investment and innovation, ultimately bolstering its economic prosperity and technological sovereignty in the global arena.