For decades, the EU relied on an export-led growth model that no longer fits a world shaped by protectionism, geopolitical rivalry, and industrial policy. This shift has hit Germany particularly hard, as China has evolved from a key export market into a major competitor in high-value manufacturing.
Europe can therefore no longer depend on external demand while seeking to finance its own transitions and resilience. The Savings and Investment Union (SIU) should be the EU’s response: a reform agenda to mobilise private savings, strengthen innovation, and deepen the single market. To succeed, it must focus on stronger, more independent supervision and a simpler legal framework for innovative firms.