The ECB warns Europe must secure €1.2 trillion yearly until 2031 for green, digital, and defense transitions amid geopolitical risks.
The European Central Bank said Europe must invest an additional €1.2 trillion annually through 2031 to fund green, digital, and defense transitions. The call comes as geopolitical fragmentation and reliance on external providers for energy, technology, and financial infrastructure pose growing risks to the region’s stability.
ECB Executive Board member Frank Elderson noted that no single sector or country can address these challenges alone. With fiscal constraints tightening, private investment and capital markets will need to play a pivotal role, particularly in a bank-dominated financial system like Europe’s.
The speech highlighted the urgency of reducing dependencies on non-European providers, framing it as essential to safeguarding economic sovereignty. Competitive and resilient banks are seen as critical to sustaining finance flows to businesses and households.