Capitalism refers to the class mode of production consisting of the capitalists who own the major means of production and the workers or proletarians that are deprived of the means of production in order to get profit. There are various factors that led to decline of the European capitalism, these includes;
1.European power were active participants in first and second world war (1914 -1918,1939-1945).The wars left the European economy was serious catastropher. The imperialist nation included Britain, German, France and Belgium.
2.The Western European imperialist states were battle field. That means the war was fought on the land field. That means the war was fought on the land of European nations therefore there was mass killings of the people and destruction of properties
3.The post second world war, left the European states highly in debted particullary by the U.S.A billion dollars were given to Britain from 1941 to the end of the second world war in 1945. Through the land lease act of 1941, caugress authorized the safe exchange or lease of arms and other equipments to Britain.
4.The Great depression of 1929-1933 before this Britain had suffered a number of depression such as economic depression of 1837/38 and 1873/1950. Which weakend her economy. Therefore, the Great depression of 1929-33, Re European Economy in serious catastropher Eg: In France the Great depression arrived later and last longer than any where in the western world. On the older land U.S.A despite the fact that she was badly affected the implemented immediate measured to solve the problem by imposing New deal policy.
5.The decline of colonial system after WWII in 1945 Africa there were the rise of mass Nationalism and also at the same time in Asia many colonies started to demand independence Eg: British lost India (1947), Pakistan(1948) and Burma (1948) also had invested much in the colonies like Canada, Australia India and Newzeland. So the independence of these colonies meant that Britain has to lose her market and invest.
6.Too many colonies. So it was burden to them according to the U.S.A policy eg:Portugal had Angola, Mozambique, Guinea Bissau e.t.c.