Could Europe use its financial muscle to strong-arm the US?

The potential for European NATO members to use their holdings of US financial assets as geopolitical leverage reveals a complex web of economic interdependence. While approximately $12.6 trillion in US stocks and bonds are held within these European nations—representing roughly 10% of the total US market—much of this capital belongs to private individuals or non-European entities using European custodians, potentially reducing the actual "European" share to $8 trillion. Financial Times journalist Toby Nangle notes that European governments lack direct control over these private assets, making a coordinated sell-off a logistical impossibility. Furthermore, any attempt to crash the US bond market would trigger a "head-butting" effect: driving down US prices would simultaneously devalue European pension funds and spike global interest rates, increasing mortgage and borrowing costs for European citizens. Ultimately, these massive capital flows represent a deep financial integration that binds the fates of both regions together, regardless of political friction.