European Union: Growth potential re-rated – TD Securities
TD Securities’ Julie Ioffe and James Rossiter argue that the European Union already possesses key ingredients for stronger long-term growth, including wealthy consumers, productive workers, deep private savings and solid fiscal capacity. They stress that policy is shifting toward reducing Single Market barriers, deepening capital markets and improving competitiveness to better deploy existing strengths across the 450 million-person EU market.
EU strengths and reform-driven upside
"If upcoming reforms manage to unlock capital, scale, and competitiveness, the EU could turn overlooked resilience into under-priced growth and profits."
"We believe Europe's challenge is not a lack of demand, talent, or productivity but its ability to deploy these strengths efficiently across a market of 450 million people."
"In this report, we argue that Europe possesses the foundations for stronger growth and that the upside from better integration and capital allocation is currently underappreciated by markets."
"This distinction matters. The region is not stagnant or weak as it has already assembled most of the ingredients associated with stronger long-term growth."
"If successful, Europe could begin converting its already solid fundamentals into stronger growth, investment, and competitiveness."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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