Increased defense spending is not just a security measure. It presents a prime opportunity to create a European safe asset, funded at both national and EU levels, which is key to developing the deep, liquid capital market Europe currently lacks.
Europe has vibrant startup scenes, but its core challenge is the "scale-up" phase. Promising companies often relocate to the U.S. to access deeper venture capital markets and a larger, more unified customer base for international expansion.
The European Central Bank is not passively letting the euro's influence grow; it's actively working to enhance its global standing. The goal is to position the euro as a significant reserve currency in an emerging multipolar monetary system, competing with the US dollar and China's yuan.
Finland's competitive advantage in attracting foreign direct investment for data centers is not just policy-driven. It stems from a practical combination of relatively inexpensive electricity and a naturally cool climate, which significantly lowers the high energy costs associated with cooling hardware.
The pivotal moment in the Eurozone crisis wasn't a bailout fund but Mario Draghi's "whatever it takes" speech. This statement transformed market psychology by signaling that the ECB would finally act as a credible lender of last resort, a function it had previously avoided, making it a "true central bank."
According to the Bank of Finland's governor, China's backing of Russia's aggression has fundamentally altered European perceptions. Europeans now view China as an ally of a nation actively trying to undermine their freedoms, creating a significant obstacle to deeper economic and political ties.
The economic model for renewable energy is the inverse of fossil fuels. While building wind or solar farms requires significant initial capital investment, their ongoing operational costs are minimal. This suggests that as Europe advances its green transition, its long-term energy cost competitiveness will dramatically improve.