For UBP’s Investment Outlook 2025, Europe is entering a pivotal year. According to Norman Villamin, the continent’s fragmented economy has come to a crossroads where challenges and transformation intersect.
Amid rising political polarisation, the eurozone faces pressing questions about its future funding and spending priorities. Key elections – in Germany in early 2025 and potentially France later in the year – will be decisive in guiding of the continent’s future direction.
For investors, this period of uncertainty calls for a sharper tactical focus. Amid the turbulence, opportunities remain in Europe’s resilient sectors and innovative hubs such as the Nordic markets and Switzerland, which offer diversification as Germany and France adjust their economic models.
Alternatively, long-term defence spending across Europe is bolstering growth prospects in the sector, as European banks, having repaired their balance sheets post-crisis, are set to benefit from increased lending activity.
When it comes to the euro, investor attention will remain firmly on Germany's elections and fiscal policies, while near-term weakness is likely to persist.
