FRANKFURT (Realist English). The CEO of DWS, one of Europe’s largest asset managers and part of the Deutsche Bank Group, has credited Donald Trump’s hardline approach to trade and security for shaking Europe out of years of economic inertia. In an interview with the Financial Times, Stefan Hoops described the former U.S. president’s policies as a “rude but effective wake-up call” that forced the continent to start confronting long-ignored structural issues.
“You might question the method, but the outcome is that Europe is finally starting to move,” Hoops said. He noted that Trump’s confrontational rhetoric — especially his criticism of NATO and transatlantic trade imbalances — had spurred the EU, and particularly Germany, to ramp up investment in defense and infrastructure.
Germany, long known for its fiscal restraint and reliance on U.S. security guarantees, now stands on the verge of a new growth trajectory, Hoops argued. He cited the recent surge in military spending — not only in Germany but also in France and the UK — as a direct response to the geopolitical shift triggered by Trump’s first presidency.
At the same time, Hoops acknowledged that Washington’s aggressive posture may have lasting consequences for global cooperation on climate, research, and trade. Still, he believes Europe could emerge stronger, driven by new cycles of investment and the avoidance of a U.S.-style recession.
“Today, people are less pessimistic about Europe — and less optimistic about the United States,” Hoops added, pointing to what he sees as a rebalancing of market sentiment.
His comments come as the U.S. Federal Reserve warns of rising inflation, higher unemployment risks, and potential business slowdowns amid ongoing trade disruptions and tariff disputes.
Hoops also warned that the current volatility marks a moment of reckoning for the asset management industry. “This is the year of truth for active management. If you can’t differentiate, you won’t survive,” he said.
Key facts
- DWS manages over €1 trillion in assets.
- Germany and the EU have significantly increased defense and infrastructure spending following Trump’s threats to withdraw U.S. security guarantees under NATO.
- The U.S.–China trade conflict is reshaping global capital flows and accelerating portfolio reallocations.
- Hoops expects further consolidation in the fund management industry as market turbulence deepens.
Europe rarely moves unless it’s pushed. Trump didn’t offer a strategic alliance — he issued a challenge. And that challenge awakened a complacent continent. The real test now is whether Europe can finish what it has started, or whether it will again wait for the next crisis to act.
