In the United States, millions of ordinary citizens have participated directly in their country's economic growth through share ownership. Meanwhile, across Europe, we continue to favour savings accounts and real estate investments. This preference leaves substantial potential wealth underutilised and represents a missed opportunity for both individuals and the broader European economy.
When Europeans invest in their companies, they not only build personal wealth but also provide vital capital to businesses that create jobs, innovate, and compete globally. This virtuous circle strengthens our entire economic ecosystem. Yet this potential remains largely untapped.
The absence of comprehensive financial education in our educational systems has created generations of Europeans who lack understanding of basic investment principles. Most citizens cannot explain how equity markets function, how compounding works, or why diversification matters.
This knowledge gap leaves them vulnerable to fear-driven decisions, market timing mistakes, and questionable advice from social media "experts."
Financial literacy should be mandatory in secondary education across the EU.
Young Europeans deserve to understand money management, investment principles, and the role of capital markets as thoroughly as they understand mathematics or science.
While Americans enjoy relatively seamless access to their unified market through user-friendly platforms, Europeans face a patchwork of national markets with different regulations, reporting standards, and accessibility. This fragmentation creates particular challenges in smaller countries and for smaller companies seeking investment.
The lack of a centralised repository for financial documents and standardised reporting hinders the development of innovative investment applications. This creates an environment where potential entrepreneurs cannot easily build solutions to connect these disparate systems.
Democratising investment across Europe would generate significant benefits:
For citizens, it would create pathways to wealth building beyond traditional savings and property. With Europeans living longer, diversified investment portfolios offer crucial opportunities for long-term financial security.
For companies, broader retail investment would provide additional capital for expansion, research, and job creation. Mid-sized European firms particularly would benefit from expanded access to investor capital.
For the European economy, increased investment activity would improve market efficiency, potentially offering companies valuations more comparable to their American counterparts. This would strengthen Europe's position in global markets and enhance our competitive standing.
Perhaps most importantly, creating a more accessible European investment ecosystem would help reverse the current capital flow imbalance. Today, Europeans invest significantly in American markets, while our own businesses struggle to attract sufficient capital. A more cohesive, accessible European market would attract investment from around the world, just as America has done for decades.
The path toward financial democratisation in Europe requires political will, educational reform, and technological innovation. But the rewards—a more financially secure citizenry, stronger companies, and a more dynamic economy—make this journey not just worthwhile, but imperative.
- Silba
I write about European companies at Silba Deep Dives
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