• What can be done to prevent capital from shifting from the eurozone to the US? – Natixis

Market news

25 October 2022

What can be done to prevent capital from shifting from the eurozone to the US? – Natixis

Financial investors and companies are better to invest in the United States than in the eurozone for several reasons. How can this trend be corrected? Analysts at Natixis explain why capital will be diverted from the eurozone to the US. 

Is financial and corporate investment flowing more heavily into the US than the eurozone?

“The greater appeal of the United States over the eurozone (higher potential growth, greater corporate dynamism, higher-quality university system, lower tax burden) is leading (financial and physical) capital to shift from the eurozone to the United States.” 

“How can this trend be corrected? The levers for action in the eurozone are clear: innovation and investment drive to lift productivity gains, greater investment in higher education, more selective public spending.”

 

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