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Les Entretiens de l'AEFR - Six Months of Trump in Power: Implications for European Markets and Future Prospects

Thursday 19 June 2025

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Presentation

Since the inauguration of the Trump administration, numerous disruptions—including deregulation, tariffs, and the questioning of established alliances—have significantly impacted both the United States and European markets. The extensive deregulation pursued across the Atlantic introduces an increasing risk of instability, and the structural divergence between USA and European markets is expected to deepen further.

Protectionist policies and aggressive trade rhetoric have heightened uncertainty, affecting liquidity and increasing the volatility of US assets. Could this environment present an opportunity for European stock exchanges? Despite transatlantic tensions, several stakeholders observe the European Union's resilience and perceive these developments as a potential catalyst for competitiveness and innovation within EU financial markets.

Monetary paradigms are also evolving. The traditional role of the US dollar is being questioned, while the euro is undergoing significant changes. Simultaneously, the rise of stablecoins—promoted by the new US administration—raises concerns about monetary sovereignty and the regulation of digital assets.

Against this backdrop of economic recalibration, financing European defence has emerged as a major strategic challenge, necessitating a rethinking of financial support mechanisms for collective security. Public and private financial institutions are poised to play a key role in redirecting financial flows towards this priority.

Finally, the economic diplomacy of EU Member States must adapt to the shifting USA paradigm to safeguard European interests and strengthen global partnerships.

This event aims to analyse these transformations and foster debate on the strategic approaches that European financial players should adopt to navigate this evolving landscape and contribute to strengthening the EU’s global influence.