European capital flight poses sovereignty challenges

Europe and France are facing challenges regarding economic sovereignty as significant amounts of capital are invested outside the continent. According to the European Commission, approximately 300 billion euros of European savings are invested abroad annually, primarily in the United States.

A growing portion of this capital is directed toward American companies through global index funds, which control nearly 70% of these flows. This shift impacts corporate governance; for instance, Morningstar reports that the average support from the fifty largest U.S. asset managers for environmental and social shareholder resolutions dropped from 30.8% in 2023 to 16% in 2025, reflecting U.S. political trends rather than the priorities of European savers.

While public initiatives like Tibi have mobilized nearly 31 billion euros in institutional savings since 2020, the debate continues over how to prioritize and finance European industries, energy, and technology.