From narrative to strategy: Candriam’s approach to Europe’s autonomy drive

Europe’s strategic autonomy is no longer a theory; it’s a trending headline, a policy priority, and an investment theme. But with many players now crowding the space, real differentiation lies not in retelling the story, but in how you act on it. 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. 
  • We believe the right approach should combine structural insight, sustainable alignment, and cross-sector expertise - setting us apart in a crowded field.

 

Europe has embarked on a route from dependency to autonomy. Its economic model has relied for a long time on global supply chains and external (energy) sources. Recent shocks have nevertheless exposed the vulnerabilities of this approach.

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.

But while the story is known, execution is what matters now, and execution requires selectivity, timing and a forward-looking investment lens.

 

From policy to portfolio

This vision is rapidly taking shape through concrete initiatives and large-scale investments that translate strategic goals into tangible actions across sectors.

In the energy sector, initiatives like REPowerEU and the European Green Deal are mobilizing close to €300 billion[6] to reduce the continent’s dependence on imported fossil fuels and modernize the energy system.

Meanwhile, Europe is rebuilding its industrial and materials base to secure access to critical resources. From rare earth elements to recycling systems and automation technologies, the continent is laying the groundwork for a more resilient and competitive industrial future. In line with these goals, technology is another cornerstone on the autonomy agenda. Through the Chips Act[7] and major digital infrastructure programs, Europe aims to reclaim a larger share of the global semiconductor market and strengthen its digital sovereignty.

The healthcare sector has also come into sharper focus since the pandemic exposed Europe’s reliance on external suppliers for critical medical products. In response, the EU is investing in biotechnology and medical technology innovation to ensure that future healthcare needs can be met with European solutions, from vaccine production to diagnostic equipment.[8]

And with €800 billion earmarked for defense modernization[9], European manufacturers are well positioned to benefit as the EU seeks to meet NATO targets and reduce its reliance on non-European suppliers.

These initiatives are more than policy goals – they represent tangible capital flows into specific technologies, infrastructure and companies. At Candriam, we track these flows closely and match them to equities that we believe will benefit most sustainably and meaningfully.

 

Allocation

Strategic sectors such as energy, technology, defence, and healthcare are not just rebounding - they’re being reshaped by Europe's urgent push for greater autonomy and competitiveness. From electrification and automation to semiconductors, cybersecurity, and medical innovation, the opportunity set is both deep and dynamic.

But building exposure isn’t as simple as allocating evenly across sectors. The real value lies in combining the right themes, timing, and instruments to construct a resilient, long-term portfolio. That’s where we come in - identifying enduring opportunities within and across sectors, with a sharp eye on structural tailwinds and geopolitical shifts. Candriam is looking, as a sustainable investor, to capture this transformation - not through off-the-shelf allocation, but by building a forward-looking portfolio aligned with Europe’s strategic shift.

 

Candriam’s edge

Our approach is grounded in three key convictions:

  1. Structural focus over short-term noise

We don’t chase headlines. Instead, we concentrate on trends and patterns with long-term investment potential.

  1. Multi sector integration

Energy self-sufficiency, digital security, defense and healthcare are not separate themes – they’re part of a macro transition. We build portfolios that reflect that.

 

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 203
[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

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