The global economy resembles a stormy sea as new trade conflicts and abrupt tariff policies unsettle businesses. Donald Trump's return to the White House triggers threats of new tariffs on goods from Mexico, Canada, China, and Europe, including steel, pharmaceuticals, and alcohol. This creates unpredictability for companies, rising prices for consumers, and sends investors in search of stable financial hubs.
Against this backdrop, investors are increasingly turning to Europe. In the past year, European stock indices rose by more than 20%, with Italian and German indices surpassing the US S&P. The euro remains a stable currency, minimizing risks for investors. The EU has also strengthened its banking system with strict oversight and capital reserves in banks.
The European Central Bank adopts predictable policies, responding quickly to inflation through interest rate changes. The EU has implemented special government bonds, and its institutions continue to function effectively, despite a high degree of regulation and bureaucracy. These factors appeal to investors prioritizing security over high returns.
However, Europe faces significant challenges: economic growth remains slow—around 1% per year, and company profits are growing more sluggishly than expected. The market is still fragmented, with over 300 stock exchanges and slow progress in capital market integration due to national interests. Geopolitical risks remain high due to the war in Ukraine, tensions with Russia, cyber and hybrid attacks, and commercial pressure from the US and China on European markets.
Europe offers stability for those looking to preserve capital. High returns are not guaranteed. Its strengths lie in stability, rule of law, currency unity, and predictable regulations for large investors. For long-term preservation and risk minimization amid global uncertainty, the Eurozone remains attractive to investors despite modest growth.