The change in economic and geopolitical policies from the US administration, combined with a significant increase in European defence and infrastructure spending, have led many investors to reassess Europe’s investment potential.
At the heart of this shift is Europe’s pursuit of strategic autonomy. For the region to act independently in key areas such as defence, energy, digital infrastructure and critical supply chains, investment plans for public initiatives on an historic scale are in the pipeline.
Planned investments in strategic autonomy amount to over €1.6 trillion. Adding up all of Europe’s plans1, more than €3 trillion in public capital is being mobilised – a transformation in scope and ambition that reflects the new geopolitical reality.
This has significant implications for Europe’s economic prospects and investment appeal – particularly in defence, infrastructure, private assets, fixed income, and equities.
