“Europe’s strategic autonomy is about securing long-term economic resilience, diversifying the region’s external dependencies and enhancing competitiveness. This will open-up long-term investment opportunities across sectors.”
- The Munich Security Conference emphasized that strategic autonomy is central to European security.
- Strategic autonomy means reducing dependencies, safeguarding long-term economic resilience and preserving policy space in an increasingly unstable world.
- These measures should bolster Europe’s economic prospects, broadening the appeal of European assets.
Since the start of the year, successive EU meetings — most recently the Munich Security Conference and an informal EU summit — have highlighted the new security paradigm centred on strategic autonomy. Priorities include reducing security fragmentation, reversing the EU’s declining share in key innovative sectors; cutting energy vulnerability; securing critical raw materials; and strengthening financial stability. Delivering this agenda requires the full policy toolkit: from industrial policy (i.e., EU’s IAA) to fiscal stimulus (i.e., in Germany). Markets are realising this and the defence index outperformance may be an early sign. The ECB’s new liquidity framework, announced by Christine Lagarde at the Munich Conference, is a signal that the ECB is framing euro liquidity as part of Europe’s geopolitical architecture. More liquid European assets would enhance financial stability, resilience and the Euro’s international role. If implemented, these steps could help unlock Europe’s economic potential.
You can now read the full whitepaper at the link below
