The economic system prevalent in Europe during the Renaissance was mercantilism, characterized by increasing trade, the accumulation of wealth, and the desire for state power through economic control. European nations sought to enhance their national wealth by accumulating precious metals and establishing colonies. This involved establishing trade routes, regulating commerce, and pursuing favorable balances of trade. The Renaissance also fostered the rise of banking systems and financial institutions, facilitating investment in trade ventures. Overall, mercantilism laid the groundwork for modern capitalism and helped spur economic changes that shaped the future of Europe.