Where Does Europe Fit In?

Research evidence excerpt

Where Does Europe Fit In?

Global | Washington Strategy July 9, 2026

Despite headwinds, Europe offers competitive strengths that make it a credible

diversifier. This note examines Europe's moats through three lenses: 1) Tech:

solid in emerging tech, dominance in lithography, aircraft, luxury; 2) Profitability:

competitive financials/industrials; Draghi reform advancing in transport, space,

pharma; trillions of public capital via SWFs and development banks; 3)

Geopolitics: leverage in shipping, African FDI, rules-based order.

Video and PPTs attached.

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This note is not a comprehensive state of play on Europe; rather, it highlights areas that are often

missed in the prevailing discourse. Headlines question whether Europe can catch up with the US

and China, the European Commission has revised growth downward on the back of the Middle Aniket Shah, PhD * | Head of Sust. &

East conflict, and political uncertainty is set to intensify with the UK on its seventh prime minister Transition Strategy

in 10 years and French elections in April next year. Yet this narrative obscures Europe's genuine +1 (212) 323-3976 | ashah14@jefferies.com

strengths across technology, profitability, and geopolitics, which we believe warrant a fresh look Yujin Kim * | Sust. & Transition Strategy

from global allocators. Associate

+1 (212) 778-8314 | ykim4@jefferies.com

We explore three questions: Luke Sussams ^ | Sust. & Transition Strategist

44 (0)20 7548 4404 | lsussams@jefferies.com

1) Where is Europe Technologically Competitive? The Global Innovation Index ranks Europe as

Charles Boakye, CFA * | Sust. & Transition

home to the top two countries globally and eight of the top 15, with Switzerland scoring higher Strategist

on knowledge and technology outputs than the US.