Dimon highlighted a dramatic shift in Europe’s economic standing relative to the U.S. “Europe has gone from 90% of U.S. GDP to 65% over 10 or 15 years. That’s not good,” he told the audience, which included Irish officials and business leaders.

He attributed this decline to structural issues and urged European policymakers to take bold action to reverse the trend. He added “the EU has a huge problem at the moment” when it comes to the competitiveness of its economy. Simply put, he said, “You’re losing.”

Calls for a complete single market

The JPMorgan chief argued Europe’s best chance at becoming more competitive is to finish building a truly unified internal market that works seamlessly across all industries. He referenced the report on EU competitiveness written in 2024 by former European Central Bank President Mario Draghi, emphasizing that deeper integration is essential if Europe wants to rebuild its global economic position.

While Dimon praised Ireland’s open economy, business-friendly policies, and strong education system, he contrasted this with the broader European picture. He described Ireland as a model for economic openness but warned the wider region is hampered by regulatory fragmentation and lagging innovation.

U.S.-Europe relations and tariff risks

Dimon also addressed the importance of transatlantic cooperation, stating, “America First is fine as long as it isn’t America alone.” He called for a new EU-U.S. tariff framework to be completed as soon as possible, warning that escalating trade barriers—such as recent U.S. tariffs on copper, Brazilian imports, and pharmaceuticals—could have significant negative effects, particularly for export-driven economies like Ireland.

Dimon cautioned financial markets are underestimating the risks posed by higher U.S. interest rates and new tariffs. He said the market is pricing only a 20% chance of further U.S. rate hikes, but he would put the odds at 40%-50%, citing inflationary pressures from tariffs, migration policies, and persistent budget deficits. He said he thinks there is “complacency” in markets.

Given Dimon’s status as an influential voice representing Wall Street, his remarks may serve as a wake-up call for European leaders and investors, underscoring the need for structural reforms and closer U.S.-EU collaboration to navigate an increasingly complex global economic landscape. Dimon’s remarks were previously reported by the Financial Times, Bloomberg, and the Irish Examiner, among others.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.