Europe is currently facing a sense of unease as innovative and cost-effective Chinese producers are challenging its established industries, causing concern among policymakers. The continent has not been a major player in the technological revolution, with the market value of America’s top tech companies dwarfing the combined stock market capitalization of its 27 member states.
In a recent interview, French President Emmanuel Macron emphasized 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 by creating an efficient financial system that can allocate savings to promising opportunities across the continent.
One significant 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.
