Nicolai Tangen, CEO of Norges Bank Investment Management (NBIM), which manages Norway’s $2 trillion sovereign wealth fund, has issued a stark warning about the state of European capital markets, describing the situation as a 'crisis' and urging immediate reform. Speaking at the Euronext Annual Conference in Paris, Tangen emphasized that Europe must unify its capital markets to compete globally, stating, 'The winner takes it all. People go where the liquidity is highest, where valuations are highest, and so it's really, really important to sort this out' [1].
Over the past decade, NBIM’s equity portfolio has shifted dramatically in favor of U.S. stocks. European equities have fallen from 41% to 21% of the portfolio, while U.S. shares have risen from 37% to around 55%. Nearly 40% of NBIM’s investments are now in U.S. equities, with its most valuable holdings including a 1.3% stake in Nvidia, a 1.2% stake in Apple, and a 1.3% stake in Microsoft [1]. Tangen attributed this shift to Europe lagging behind in technology and innovation, particularly in artificial intelligence, noting, 'It is because of the U.S. companies' dominant position in AI we do not have strong companies in Europe in that field' [1].
In 2025, NBIM posted an annual profit of 2.36 trillion kroner ($246.9 billion), much of which was credited to the strength of the tech sector [1]. Tangen suggested that Europe could improve its position by better applying AI, and observed, 'There are some signs that, in terms of diffusion of technology, Europe is doing pretty well.' However, he stressed the urgency of reform, warning that without consolidation and unified rules to facilitate cross-border trade, Europe risks falling further behind [1].
Market watchers and regional officials have echoed Tangen’s concerns. IMF Managing Director Kristalina Georgieva, in January, called on European leaders to finalize the capital markets union, complete the energy union, make it easier for employers to secure labor from across the EU, and increase investment in research and innovation [1]. Tangen highlighted NBIM’s significant European presence, with stakes in 2.3% of all listed European companies, and reiterated the fund’s commitment to the region despite the current challenges [1].
CONCLUSION
The CEO of Norway’s sovereign wealth fund has sounded the alarm on Europe’s fragmented capital markets, citing a significant shift in investment toward U.S. equities driven by American dominance in technology and AI. The call for urgent reform and market unification is echoed by other financial leaders, underscoring the high stakes for European competitiveness. The market takeaway is clear: without swift action, Europe risks losing further ground to the U.S. in attracting global capital.