Larry Fink, CEO of BlackRock, the world’s largest asset manager, believes Europe is being underestimated by global investors and says it’s time to rethink the region’s potential. Speaking at the World Economic Forum in Davos on January 24, Fink remarked, “There’s too much pessimism on Europe. I believe it’s probably time to be investing back into Europe.”
He stressed the need to advance the capital markets union, calling it a pivotal step toward unlocking Europe’s full economic potential.
European Central Bank President Christine Lagarde echoed Fink’s concerns, labeling the global landscape an “existential threat” for Europe. She pointed to geopolitical tensions, competition with the U.S. and China, and the ongoing economic fallout from the war in Ukraine as key challenges. However, Lagarde remained optimistic, asserting that Europe has the talent and resources to overcome these hurdles if investment is directed wisely. “We need to keep the talent and savings at home,” she emphasized, underscoring the urgency of integrating European capital markets to bolster competitiveness.
Fink highlighted promising signs in Europe’s economy, noting a stabilization in the services sector and a slowdown in manufacturing decline. “Investors are too focused on risks but are overlooking the opportunities that a market as diverse as Europe still offers,” he added, suggesting the continent could be at a turning point.
For BlackRock, this shift in perspective might signal a fresh chapter. However, the firm recently faced scrutiny in the U.S. On January 9, BlackRock ceased funding initiatives tied to the Net Zero Asset Managers (NZAM) coalition, prompting the group to suspend its activities days later. This follows the closure of BlackRock’s ESG department on September 22, amid backlash from conservative critics in the U.S.
Fink’s remarks at Davos could spark a new narrative, encouraging investors to take another look at Europe’s untapped potential despite global uncertainties.
