Europe’s strategic autonomy is no longer a theory; it’s a trending headline, a policy priority, and an investment theme. But how should investors position themselves for this shift? At Candriam, we see Europe’s autonomy shift not as a short-term theme, but as a long-term, multi-sector transformation.
The big picture, fast
- Europe’s push for autonomy is reshaping energy, tech, defense, and healthcare.
- Over €1 trillion in public investment is mobilizing to rebuild Europe’s industrial base.[1]
- We believe the right approach should combine structural insight, sustainable alignment, and cross-sector expertise - setting us apart in a crowded field.
Europe has long depended on other parts of the world for the essentials that keep its economy running – energy, technology, defence equipment, and even medicines. But recent global shocks have shown how risky this reliance can be.
Consider this: nearly 60% of the EU’s energy is imported[2]. Over 80% of its semiconductors come from Asia[3]. In defense, over 60% of procurement is sourced from the United States[4], while in healthcare, up to 80% of the raw materials for antibiotics depend on imports from China and India.[5] The vulnerabilities are well documented.
These weaknesses are widely recognised. The key question now is how Europe puts its plans into action – and for investors, that means identifying which sectors and companies may stand to benefit most as Europe invests in becoming more self-sufficient.
From plans to real opportunities
Europe’s ambition to be more self-reliant is no longer just political talk – it is being backed by massive investment programmes that touch energy, technology, healthcare, and defence.
- Energy: Programmes such as REPowerEU and the European Green Deal are funnelling almost €300 billion[6] into cutting Europe’s dependence on imported fossil fuels and accelerating the shift to renewables. That means more investment in wind farms, solar power, and smarter energy grids.
- Industry and technology: Europe is working to secure access to critical raw materials and develop recycling and automation systems. The EU Chips Act[7] is also designed to bring a bigger share of semiconductor production back to Europe, so that the chips powering everything from cars to smartphones are not almost entirely sourced from abroad.
- Healthcare: The pandemic showed how dependent Europe was on overseas suppliers for medicines and vaccines. In response, the EU is putting money into biotech and medical technology so that future vaccines, treatments, and diagnostic equipment can be produced within Europe.[8]
- Defence: Around €800 billion is being set aside for modernising defence.[9] This means more contracts for European defence manufacturers as the EU looks to meet NATO commitments and reduce reliance on non-European suppliers.
How to invest in Europe’s shift
Energy, technology, defence, and healthcare are not only bouncing back – they are being reshaped by Europe’s push to become more self-sufficient. This shift is creating opportunities in areas such as clean energy and electrification, automation and robotics, semiconductors and cybersecurity, as well as biotechnology and medical innovation.
For investors, however, it is not simply a question of spreading money evenly across all of these sectors. The real challenge is choosing the right themes at the right time, and combining them in a way that helps to build a portfolio designed to endure.
At Candriam, we concentrate on identifying long-term opportunities both within and across these sectors. Our aim is to capture Europe’s transformation responsibly, by investing in companies that reflect Europe’s autonomy ambitions while also meeting our sustainability standards.
What makes our approach different
We believe that investing in Europe’s autonomy requires more than simply following the headlines. Our focus is on the long-term structural trends that can shape the continent’s future, rather than short-term news or market noise.
We also look across sectors rather than treating them as separate themes. Energy independence, digital security, defence, and healthcare are all connected parts of the same transformation. By bringing them together, we aim to build portfolios that better reflect the reality of Europe’s shift towards greater self-reliance.
Finally, we approach this theme with a strong sense of responsibility. Autonomy and sustainability may not always be linked in people’s minds, but we believe they must go hand in hand. Our expertise in sustainable investing helps us identify companies that not only benefit from Europe’s autonomy drive but also contribute positively to society and the environment.
Why now?
We believe European autonomy is entering its next phase – from theory to implementation. Capital is being deployed, and infrastructure is being built. And companies with the right technology and scalability are positioned to benefit.
This transformation calls for conviction-led selection - not broad strokes - grounded in Candriam’s sustainability DNA and deep understanding of European markets. Stay tuned!
[1] ReArm Europe Plan/Readiness 2030
[2] Energy statistics - an overview - Statistics Explained - Eurostat
[3] Asian dominance in the semiconductor industry
[4] The Future of European Defense | Goldman Sachs
[5] EU announces plans to cut reliance on Asia for antibiotics, other critical drugs | Reuters
[6] REPowerEU
[7] European Chips Act - European Commission
[8] EU approves €403 mln in funding for companies to boost medical device innovation | Reuters
[9] Future of European defence - European Commission