In the face of external threats, the EU is responding. Sovereignty is no longer an abstract aspiration - the EU’s focus is on securing and shaping its own future - as set out in the European Commission’s 2026 work programme, entitled ‘Europe’s independence moment’.

Recent policy developments in the United States, particularly those related to inflation and long-term debt sustainability, have brought significant implications for global fixed income markets. With the fiscal outlook becoming increasingly strained, it is an interesting moment to assess how markets are reacting and how investors should position themselves in the current environment.

While stressful, equity volatility and intra‑year pullbacks are surprisingly common. Since 1980, the S&P 500 has averaged an intra‑year decline of around 14 %, with individual drawdowns reaching up to 40 %. This helps put the recent market disturbance into perspective.