JPMorgan Chase chief executive Jamie Dimon warned European leaders they have a competitiveness problem and that they are currently “losing” the battle to rival the US and China.
“Europe has gone from 90 per cent US GDP to 65 per cent over 10 or 15 years. That’s not good,” Dimon said at an event in Dublin organised by the Irish foreign ministry. “You’re losing.”
The comments from Dimon, one of the most influential voices in global finance, underscores the challenges facing the European Union as it battles to invigorate its economy.
The continent’s former top central banker Mario Draghi last year demanded a new industrial strategy for Europe with investments of €800bn a year to maintain competitiveness with the US and China.
It is an even blunter message from Dimon than he made in his most recent annual shareholder meeting in April, where he said “Europe has some serious issues to fix”, and urged European nations to “significantly reform their economies so they can grow”.
Dimon, who has run JPMorgan since 2006, also warned that financial markets had become too relaxed about Donald Trump’s repeated threat of tariffs.
Investors on Thursday brushed off the US president’s latest threat of a 50 per cent tariff on copper, 200 per cent tariffs on the pharmaceutical sector and levies on countries including Japan and South Korea.
“Unfortunately, I think there is complacency in the market,” Dimon said.
He said Trump had so far been correct in backing down from his biggest threats on tariffs, invoking the so-called Taco trade based on the premise that “Trump always chickens out”.
“I hate to use the word ‘Taco trade” because I think he did the right thing to chicken out,” Dimon said.
Posted by WildestDreams_
6 Comments
I agree but I hate that I have to hear that from an American, especially Jamie Dimon of all people.
I do wonder what will become of my continent in the next 20 years. When America and China invent new technology or tech services, us lot in Europe brag and cheer about coming up with regulations for it. Now a lot of those regulations are genuinely good to have, but it does make me wonder if the lack of tech is going to leave us irrelevant in the next couple decades.
You can’t stay rich if you’re more concerned with regulating over innovating, and unfortunately selling wine, combustion engine cars, and luxury fashion is not going to sustain a wholesome chungus social democracy.
Thats our whole kink mr Dimon.
The daily bashing of Europe. Move along
I have so many problems with this narrative.
It’s not even that I disagree with the basic issues but:
1. This issue has already been discussed in detail. What else can Jamie Dimon of all people still add to this conversation? Especially in a world where Europe has become insanely disenfranchised with the US? And especially considering that at least some of these issues, as outlined by Mario Draghi, are being addressed already?
2. This whole narrative that Europe is losing to the US and China is laughable. Let’s just skirt around the fact that Europe is still reeling from a crisis that would’ve destroyed less stable economies, and is just now, returning to growth. It feels insanely bad faith to not wait until at least like 2027 or something to make definitive judgements on Europe’s future status. Also, let’s completely ignore the fiscal irresponsibility of China and the US that helped them achieve their high growth. As we all know, that same strategy worked for Italy too, with of course no negative consequences whatsoever.
3. It’s nice that Jamie Dimon has apparently completely reversed course on what he thinks of Trump’s tariff policies. Will he keep flip flopping? Bad look imo.
China and the US are also losing, but Europe is losing too.