JPMorgan Chase CEO Jamie Dimon dismissed Canadian Prime Minister Mark Carney’s proposal for a coalition of "middle powers" as a "fantasy" during the Council on Foreign Relations’ CEO Speaker Series in June.

Dimon argued that a similar approach has already been attempted in Europe, resulting in an economic downturn. He noted that Europe’s GDP fell from 90% of America’s to 70%.

"They did that; it’s called Europe," Dimon said.

Economic Competitiveness and Capital Flows

Dimon attributed the decline in Europe’s economic competitiveness to high taxes, burdensome regulation, and weak capital formation. He described the region as "anti-business" and warned that these factors could lead to further erosion of the economy.

He highlighted that governments are carrying debt loads nearing 100% of GDP. Dimon added that significant capital from Europe is moving to the U.S.

Market Size Disparity

The JPMorgan Chase CEO compared the size of U.S. capital markets, which is nearly $70 trillion, with those of Europe, specifically Britain’s FTSE 100, Germany’s Deutsche Börse, and France’s Paris Bourse.

"That is serious stuff, and there’s not a deep recognition," he said.

Dimon suggested that rather than creating new geopolitical blocs, Europe should focus on building a genuine common market and adopting policies that drive economic growth. He emphasized that America’s larger stock market reflects policies that have encouraged investment and economic expansion.

US-Canada Trade Tensions

This criticism comes against the backdrop of strained relations between the U.S. and Canada. Earlier this year, Canadian PM Mark Carney criticized the weakening of the "rules-based international order" at the World Economic Forum in Davos. He urged middle powers to unite against economic coercion following a visit to China and a tariff deal with Xi Jinping.

Trump responded at Davos, warning Carney that "Canada lives because of the United States." The President later withdrew an invitation for Canada to join his "Board of Peace."

Trade ties between the nations have worsened. Last month, trade talks between the U.S. and Canada fell apart, and both nations escalated the trade war. Carney expressed concerns over Canada’s heavy reliance on the U.S. for economic partnership.

Amid the escalating trade war, he urged a shift in economic strategy, calling for accelerated trade and investment with "trusted partners" beyond the U.S., reiterating the essence of his "middle powers" speech.