“Europe is losing”: JPMorgan CEO warns of declining EU competitiveness

Jamie Dimon, the influential CEO of the American investment bank JPMorgan Chase, has warned European leaders that the European Union is losing competitiveness compared to the United States and China. His remarks, delivered during an event organized by the Irish Department of Foreign Affairs in Dublin, are unusually sharp and sound a warning.

“Europe is losing ground,” Dimon stated bluntly. He pointed out that Europe’s combined GDP has fallen from 90% of US GDP to just 65% over the past 10 to 15 years. “That’s not a good development,” the banker said.

Dimon’s remarks fall within a broader context of growing concerns about the continent’s economic trajectory. Last year, former ECB President Mario Draghi called for a large-scale European industrial reorientation, with annual investments of up to €800 billion .

Without such an effort, Dimon agrees, Europe risks structurally losing ground. ” We have a strong market here in Europe, with large and successful companies operating globally. But that scale and influence are declining,” Dimon said. “You still have that, but it’s becoming less and less.”

An uncomfortable mirror for European policymakers

Dimon’s words are not simply being ignored in Europe. As the head of one of the world’s largest banks – JPMorgan manages trillions of dollars in assets – his voice carries weight not only financially but also geopolitically. His public reprimand of Europe underscores the seriousness of the situation.

According to Dimon, Europe lacks structural reforms, innovative strength, and sufficient investment drive. He believes EU member states urgently need to reform their economies to stimulate growth and remain relevant in a world increasingly dominated by technological superpowers like the US and China.

Financial markets underestimate Trump’s threats

In addition to his concerns about Europe, Dimon also criticized the financial markets, which he believes are too light-hearted in their approach to the political risks posed by Donald Trump.

“Unfortunately, there’s a certain complacency in the markets,” says Dimon. He’s referring to the so-called “taco trade” phenomenon : an investor strategy based on the assumption that Trump always backs down from his most egregious threats.

“I hate to call it a ‘Taco trade,’ but I think he did the right thing by backing out,” Dimon joked. However, he warned that relying on that pattern is dangerous, especially as the geopolitical and economic situation escalates.

Criticism of the Democrats and speculation about the Trump dynasty

Dimon also minced no words when it came to US domestic politics. He criticized the Democratic Party for what he described as exaggerated “woke” positions. In particular, he called Zohran Mamdani—who won the Democratic primary for New York City mayor—a “Marxist . “

Dimon also had reservations about Trump’s future plans. Although a third term is constitutionally barred, he commented on the possibility of a succession within the Trump family. According to Dimon, vice presidential candidate J.D. Vance would not readily agree to a deal in which he doesn’t play a leading role. He even suggested that Trump might put forward his son, Eric Trump , as a possible successor.

“He’ll say, ‘Come on, buddy, your time’s up, go back to the basement,'” Dimon said with a wink about Vance. “But if Trump actually did that, then maybe I’d consider it myself,” he added—a striking statement from someone who previously said he had no political ambitions.

Europe is in danger

Dimon’s message is clear: Europe is in danger of finding itself in a rearguard battle. While the US and China are investing massively in technology, infrastructure, and industry, Europe is lagging behind with slow decision-making, underinvestment, and a lack of coherent policy.

Whether European leaders are taking this wake-up call seriously remains unclear. But with a figure like Jamie Dimon so explicitly addressing the issue, the pressure on policymakers in Brussels, Paris, and Berlin is only mounting.