More than half of Americans are invested in the economy—directly, through life insurance, or pensions. In contrast, only 10 to 20 percent of Europeans invest similarly, says macroeconomist Edin Mujagic. He references a report by former ECB chief Mario Draghi, which recommends mobilizing European savings by encouraging more investment. ‘In the Netherlands alone, €500 billion sits idle in savings accounts, not contributing to economic growth,’ Mujagic notes.
Economists predict the ECB will cut interest rates twice this year, lowering the deposit rate to 1.75%. Meanwhile, Fed Chair Jerome Powell warns that U.S. rates won’t return to near-zero levels soon, citing economic shifts and supply shocks.