International Investment

• European technology investment in Q2 2026 is experiencing a structural shift as capital organizes around strategic sectors. • Funding models have evolved beyond traditional equity, with a growing reliance on "hybrid capital" including debt, grants, public backing, and strategic capital. • This diversification is driven by companies requiring funds for operational needs beyond basic product development and market expansion.

• The European Central Bank released balance of payments data for the first quarter of 2026, highlighting the euro area's current account surpluses. • The region recorded its largest bilateral surpluses with the United Kingdom at €236 billion and Switzerland at €78 billion, both increasing from the previous year. • Other notable surpluses were recorded against emerging economies (€140 billion), advanced economies (€111 billion), and offshore centres (€36 billion).

• The European Central Bank (ECB) is introducing new indicators to assess the global appeal of the euro by analyzing currency exposures within the euro area's international investment position. • Data from 2024 reveals that the euro area accounted for approximately one-fifth of global cross-border assets and liabilities, totaling around €175 trillion. • This analysis is critical for understanding the single currency's role in international finance and its ability to maintain price stability and purchasing power.