Europe is facing a sense of unease as Chinese producers challenge the continent’s traditional industries and disrupt policymakers. Although America has dominated the tech market, President Emmanuel Macron has emphasized that economic prosperity and technological sovereignty are vital for great power status. However, Europe must become more attractive to investors and innovators to generate enough wealth per capita.
To achieve this goal, Europe must have access to large amounts of capital and a streamlined financial system that can efficiently direct savings towards promising investment opportunities throughout the continent. Unfortunately, European finance remains fragmented due to national boundaries, which hinders its ability to compete in a rapidly changing global economy. Therefore, banking and capital-market reforms are crucial now more than ever to improve Europe’s financial infrastructure and secure its position as a leading economic power.