The ECB warns Europe must secure private capital to fund €1.2 trillion yearly spending on green, digital, and defense transitions by 2031.
The European Central Bank said Europe must invest an additional €1.2 trillion annually through 2031 to address critical dependencies in energy, technology, and security. The spending aims to support green, digital, and defense transitions amid tightening fiscal space across member states.
Current reliance on external providers for key financial infrastructures and capital markets leaves Europe vulnerable, the ECB noted. Private investment will be essential as public funding capacity shrinks, with banks playing a central role in channeling capital to businesses and households.
The call underscores the need for resilient, competitive financial institutions to sustain economic stability and reduce geopolitical risks.