Technology and sovereignty: rearming European active management!
Michel Saugné, CIO, La Financière de l’Échiquier (LFDE) May 2025
At a time when European sovereignty has become a strategic necessity, control of critical technologies is now imperative. To meet this challenge, it is essential to mobilise the financial ecosystem. High-conviction active management plays a central role here. By supporting innovation and financing strategic enterprises, it serves as a crucial driver for the continent’s economic and industrial independence.
The issue of European sovereignty – in energy, industry, technology and, of course, security – has now become a strategic priority. Geopolitical reality is a forceful reminder that the defence of European interests, and more broadly our democratic model, calls for resources, skills… and capital.
Technological sovereignty lies at the very core of this transformation. It covers not only digital, energy and demographic transitions but also the ability to control critical value chains, and secure data – cybersecurity, space, AI, robotics, components, quantum communication, etc. Against this background, the “defence tech” sector has attracted renewed attention. This impetus is boosting growth for a network of innovative companies, frequently of medium size, which nevertheless find it difficult to access long-term financing. This is where we believe that high-conviction active management proves its worth.
Active managers have a critical role in supporting these companies: by taking part in IPOs, guaranteeing the liquidity of secondary markets, exercising their voting rights to uphold sustainable corporate governance, and keeping capital anchored within Europe. They provide a direct connection between domestic savings and the financing requirements of strategic actors in our economy.
In contrast, the increasing concentration of capital flows into the US large caps and index strategies heightens the risk of structural decoupling of the Paris stock market and loss of control of sensitive companies. Many leading French groups nowadays find that the majority of their capital is owned by foreign investors, who by nature are often passive but nonetheless have some influence on strategic decision-making.
This situation gives high-conviction active management an essential strategic role. By channelling savings into the companies building the technological and industrial foundations of European sovereignty, it plays a leading part in the economic independence, innovation and stability of the continent. Investing in European technology means first and foremost investing in our collective capacity for decision-making, innovation – and protection – in order to retain our sovereignty.