Blain’s Morning Porridge September 15th, 2026“Europe was created by history. America is a product of philosophy.”Europe is a diverse, culturally rich and fascinating continent but increasingly looks an economic basket case facing economic and demographic decline. Its suffering economic PTSD after successive shocks in Banking, Sovereign Debt and now Energy. Now it’s being squeezed between an unreliable USA and China’s proxy, Russia. Maybe that’s the challenge it needs?LINK TO PODCASTKey TakeawaysThe Geopolitical fragmentation of the Western Alliance raises serious challenges for Europe.Europe should be economically significant, but its history and political fragmentation has held it back.It is scarred by economic crises – 2008, the Sovereign Debt Crisis, the Ukraine Oil Shock, and now the post-Nato era challenge to defence.The key economic weakness is the lack of depth to its capital markets. There is no single market to enable European businesses to thrive.Effective capital markets will require Unity (and probably the integration of the UK).Europe is not too small, poor or unskilled, but it lacks an effective capital market and political unity. In an increasingly fraxious world it must unify or be picked off one by one.We live in a very changed World.Europe is struggling with scale, growth and productivity. The future looks likely to be American or Chinese. Neither of them looks particularly attractive options from this side of the Pond. Yoorp will likely be left behind. Unless… something was to happen to galvanise European unity and growth.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related