JPMorgan Chase CEO Jamie Dimon criticized Europe's inefficient bureaucracy and warned that the "weakened" continent poses significant economic risks to the U.S.
"Europe has real problems," Dimon said Saturday at the Reagan National Defense Forum. "They've done well with social safety nets, but it has also led to corporate outflows, investment outflows, innovation outflows—these negative effects are gradually emerging."
While Dimon praised some European leaders who "recognize the issues," he admitted that political affairs in Europe are "extremely difficult."
As head of America's largest bank, Dimon has long argued that the risk of European fragmentation is one of the world's major challenges. In his annual shareholder letter earlier this year, he stated that Europe has "serious problems that need urgent solutions."
On Saturday, Dimon acknowledged the creation of the euro and Europe's role in promoting peace but warned that reduced military spending and the EU's internal consensus-building difficulties threaten the continent.
"If Europe fragments, the idea of 'America First' will disappear," Dimon said. "This would hurt us more than any other country because Europe is our critical ally on every level—including shared values, which are absolutely vital."
He argued that the U.S. should extend assistance. "We need a long-term strategy to help Europe regain strength," Dimon said. "A weak Europe is not good for us."
The Trump administration's updated National Security Strategy shifted U.S. priorities toward the Western Hemisphere and homeland protection while downplaying Europe, describing it as a continent facing "civilizational decline."
JPMorgan has been ramping up efforts to boost defense-sector investments. In October, the bank announced plans to invest $1.5 trillion over the next decade in industries that "strengthen U.S. economic security and resilience"—$500 billion more than originally planned.
Investment banker Jay Hooley oversees the initiative, which Dimon called "100% commercially driven." The plan focuses on four areas: supply chains and advanced manufacturing, defense and aerospace, energy independence and resilience, and cutting-edge strategic technologies.
JPMorgan will also deploy up to $10 billion of its own capital to help companies scale up, drive innovation, or accelerate strategic manufacturing growth.
Additionally, Dimon praised the Trump administration's efforts to "streamline government bureaucracy" on Saturday.
"There’s no question this administration is trying to aggressively reform bureaucracies that hold America back," Dimon said. "That’s a good thing—we can absolutely advance reforms while keeping the world safe, food safe, banking safe, and all these critical areas secure."
Comments