European Sovereignty: A Strategic Catalyst for Multi-Sector Investment

In this June 2025 report, Allianz Global Investors outlines how the rise of European sovereignty—amplified by geopolitical shifts and global trade realignments—is unlocking investment opportunities across defence, energy, and tech sectors.

• Strategic autonomy is reshaping policy and capital flows, driven by the EU's accelerated defence posture and sectoral reindustrialization in response to U.S. disengagement and global uncertainty.

• European equities benefit from structural tailwinds, including renewed fiscal stimulus, nearshoring trends, and undervaluation relative to U.S. peers.

• Key growth areas include defence, green tech, biotech, and digital infrastructure, with mid-cap firms playing a critical role in long-term regional competitiveness.

Explore the full report to assess how sovereignty-led investment themes can reshape European portfolios and deliver differentiated alpha.