JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon said Europe is “currently on a bad path” and called for “one big, beautiful free trade agreement with all of Europe” in his annual shareholder letter published Monday.

The 48-page letter devoted its longest section to what Dimon titled “Critical Issues Facing America and the World.”

He argued America needs Europe to succeed, but said the continent requires sweeping economic and military reforms in exchange for any trade deal.

Dimon warned that global conflicts “should permanently dispel the illusion that the world is safe” and said no country has “a divine right to success.”

What The Markets Say

The eurozone economy grew 1.5% in 2025, up from 0.9% in 2024.

That sounds like progress until you compare it to the U.S., which grew 2.1% over the same period.

The gap is not new. Europe has been underperforming America for years, and it shows beyond GDP.

Eight of the world’s ten most valuable public companies are American. None are European.

The eurozone has roughly 350 million people to America’s 330 million, yet produces a significantly smaller economy.

Inflation may be where Europe is most vulnerable.

The ECB revised its baseline forecast upward from 1.9% to 2.6% in March on surging energy costs, and March’s flash estimate already showed headline inflation jumping to 2.5% from February’s 1.9%.

A Polymarket contract on eurozone annual inflation shows a 53% chance it exceeds 3.1% this year. The market is new and still has limited liquidity.

U.S. inflation sat at 2.4% in February. Both regions face upward pressure, but Europe’s exposure is structurally worse.

The U.S. is the world’s largest oil and gas producer.

Europe imports most of its energy, leaving it far more exposed to the kind of commodity price shocks Dimon warned about in the same letter.

What Else Dimon Said

Dimon warned the Iran war risks further oil and commodity price shocks and said “time will tell” whether the conflict achieves its goals. He said AI adoption at JPMorgan would likely be “far faster” than previous technological shifts like electricity or the internet.

He also revealed JPMorgan now employs fewer people in New York City than it did a decade ago, while headcount in Texas has grown. “This trend will likely continue,” he wrote.

Dimon recently told CBS he could see JPMorgan eventually offering prediction market services to customers.

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