Europe’s ‘marginalisation’ a ‘make-or-break’ moment for EU – Giovanni Bartolotta

The European Union is facing its “make-or-break” moment, according to APS Bank Chief Risk Officer Giovanni Bartolotta, with the bloc risking “marginalisation” by more forceful powers.

In comments made during a market briefing, Mr Bartolotta – whose career includes stints at Kleinwort Benson, JP Morgan Chase & Co., Bear Stearns International and FIMBank – said Europe “needs to find a role in the new global order.”

He said the EU has many such opportunities, but it needs to become more autonomous – which requires investment in its defence capabilities.

United States President Donald Trump’s “let’s call it random behaviour” with regard to tariffs, he said, is unlikely to pose a threat to the Maltese economy, which exports very little directly to the US.

Any short-term effects from geopolitical restructuring, he continued, “will not be very pronounced in Malta.”

However, he cautioned that the global environment remains “very unpredictable” and requires “careful navigation”.

APS Bank CEO Marcel Cassar agreed that Europe needs more strategic autonomy, citing Mario Draghi, the former President of the European Central Bank and former Italian Prime Minister who has emerged as a major figure calling for the revitalisation of the EU.

With regard to banking, Mr Cassar said Europe “needs banks that are strong and robust,” urging authorities to look beyond stringent regulatory frameworks to ensure that European banks are actually competitive.

“Only be being competitive will Europe’s banks have the capacity to finance the needs of the European economy,” he said.

“There is huge excess capital in Europe. It could finance the green transition, climate adaptation, digitalisation and defence. The call for the upheaval, simplification and transformation of Europe’s banking sector could not be more urgent.”