Rene Petersen, Lead Portfolio Manager of Nordea’s Empower Europe Strategy
Europe stands at a crossroads. A fractured global order has exposed its dependencies — on Russian energy, Asian manufacturing, and U.S. military support. What was once a stable framework for growth is now a source of risk and volatility.
Strategic autonomy is no longer aspirational — it’s essential. But autonomy alone won’t drive returns. Europe must also regain its competitive edge in innovation, productivity, and capital efficiency.
Mario Draghi’s recent report lays out the opportunity: closing the competitiveness gap with the U.S. will require €800 billion in annual investment through 2030. That’s not just a policy target — it’s a roadmap for capital allocation and long-term value creation.
While global markets grapple with fragmentation and uncertainty, Europe is quietly gaining momentum. Capital is already flowing into key sectors — from energy and infrastructure to advanced manufacturing and digital transformation — that will define the continent’s strategic and economic future. This transformation is creating significant investment opportunities now.
Europe’s response: a unique investment opportunity
Europe is mobilizing to reshape its strategic future — and this transformation is being powered by both public and private capital. While the Europe has laid out an ambitious roadmap, private investment is also accelerating across key sectors, reinforcing momentum and creating a unique window of opportunity for investors.
The European Union is mobilizing over €1 trillion to accelerate progress across three strategic pillars:
Energy independence & Efficiency
Europe is accelerating investment in critical infrastructure and energy systems to reduce external dependencies and strengthen long-term supply stability. Backed by the €300 billion REPowerEU plan1, these efforts include modernizing the power grid, increasing domestic resource recovery (such as copper), upgrading outdated building stock, and securing access to essential raw materials—core components of a more self-sufficient and resilient energy landscape.
Strengthening Europe’s Industrial Base
Europe is restoring its strategic industrial capabilities focusing on operational control, resilience, and technological access rather than labour costs. The €43 billion EU Chips Act1, among other initiatives, aims to boost industrial autonomy, particularly in critical sectors like semiconductors. Significant investment in machinery, R&D, and intellectual property is essential to regain competitiveness.
Ensuring Strategic Autonomy
While NATO remains essential to Europe, recent events have underscored the risks of excessive reliance on external partners. Consequently, the €800 billion ReArm Europe plan1 seeks to enhance defence capabilities through investment in dual-use technologies (civil and military), cybersecurity, and modern equipment. With NATO recommending targets of 3% to 5% of GDP defence spending targets, strategic autonomy is a top priority.
Nordea’s Empower Europe Strategy: Investing in Europe’s strategic agenda
Europe’s transformation is already underway — and investors have a narrow window to position ahead of it. To capture this opportunity, Nordea Asset Management has launched the Empower Europe Strategy, an actively managed equity solution focused on three core themes aligned with the continent’s long-term strategic priorities
- Energy Resilience
- This theme targets companies critical to securing Europe’s future energy systems — including power infrastructure, energy storage, building efficiency, and electrified transport.
- One example is Prysmian, a global leader in cable and telecom systems, playing a central role in modernizing infrastructure essential for energy reliability and security.
- Reshoring
- Europe is rebuilding its industrial capabilities, with a focus on automation, robotics, and operational control.
- For instance, Schneider Electric is a standout, offering advanced digital and industrial solutions that reduce dependency on external platforms and support a more self-reliant production base.
- Defence & Cybersecurity
- Strategic autonomy requires more than traditional defence. This theme focuses on forward-looking capabilities — from cyber intelligence to autonomous systems.
- A great example is Theon, a Greek mid-cap company that develops night vision and thermal imaging systems used by military, special forces, and law enforcement agencies.
This shift is already happening — and the investment opportunity is now. The Empower Europe Strategy is built to access this momentum, combining a clear thematic lens with all-cap flexibility to identify differentiated opportunities, including small and mid-cap innovators that often sit at the core of these transitions, combining innovation with scale and flexibility.
A seasoned investment team
Backed by an investment team with over 30 years of expertise in European equities and a proven track record of alpha generation2, built on years of successful stock selection, the strategy is designed to identify and invest in the companies leading, and benefiting from, Europe’s structural shift.
Seizing the moment
Europe’s transformation is already underway — the momentum is real, and capital is flowing fast. This is not the time to wait. It’s the time to act, position early, and seize the opportunities shaping the continent’s future.
Empower Europe. Empower your portfolio.
1 Source: European Commission
2 The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money.
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