Two 2026 papers explain the US–EU competitiveness gap and how to close it. One traces it to funding-market efficiency, EU market fragmentation, and a scale penalty on large EU firms, while the other shows that fixing Europe’s banking and venture-capital gaps could lift long-run GDP by about 3%.

A new report calls on Europe to replace its collapsed reliance on US security and open markets with a New Social Contract built on common investment, collective defense, and fiscal integration, while a key commentary argues that Europe’s greatest strategic asset is its rules-based identity, and that the declining dollar offers a historic opening for the euro.

As global trade fractures under geopolitical pressure, Europe is pivoting from export dependency to a domestically driven growth model anchored in investment, demand, and strategic autonomy.

EU bonds trade at a surprising yield premium over equally safe sovereigns, not due to credit risk but because their legal status excludes them from major bond indices and shrinks their investor base. A bold proposal to exchange part of national debt for large-scale senior “blue bonds” offers a concrete remedy.

Two recent reports emphasize the importance of Eurozone to complete its banking union and enhance sector resilience, while adopting a broader strategic vision that addresses vulnerabilities from global uncertainty and reduces over-dependence on the US-centric financial system.

Two studies reveal Europe’s innovation challenge: shifting to knowledge-intensive industries reduces inequality but suppresses job growth, while rigid labor market institutions limit the dynamism needed for tech sector success.

As the European Union renews its ambition to build a financial ecosystem rivaling that of the United States, two landmark proposals for a Eurobond market offer distinct pathways forward. This newsletter compares their visions, highlighting the trade-offs between financial market depth and crisis resilience.

Recent policy analyses on the European Commission’s emerging policy platform, focusing on productivity growth, defense capabilities, foreign economic policy, and financing priorities, and the additional complexities introduced by Trump’s aggressive policies and their implications for EU strategy.

Mario Draghi’s recent report on European competitiveness proposes radical changes across multiple sectors. While most experts support the call for EU-wide new policies, others argue against specific recommendations.

The EU’s capital markets union has stalled. A new look at the structural impediments and a suggestion on how to move forward.