Why did European nations eventually move from mercantilism to capitalism as an economic system for their nations?

European nations transitioned from mercantilism to capitalism due to the limitations of mercantilist policies, which emphasized state control and trade regulation. The rise of the Industrial Revolution fostered innovation, competition, and consumer demand, prompting a shift toward free markets and private enterprise. Additionally, the emergence of banking systems and increased trade facilitated investment opportunities, leading to greater economic growth and efficiency under capitalism. This transition was further supported by Enlightenment ideas advocating for individual rights and economic freedom.