ECB warns that European capital is going to the United States

Annually around 250,000 million euros in financing leave Europe, mainly to the United States, said the president of the European Central Bank (ECB), Christine Lagarde. Given this, he urged the integration of capital markets into the European Union (EU) so that these investments are made in Europe.

During a meeting of eurozone economic leaders in Ghent, Lagarde warned eurozone finance ministers that this financial flow going to other markets is the equivalent of 1.8% of European gross domestic product (GDP).

The meeting between the representatives of the 27 EU countries takes place within a framework that seeks to advance the capital market union and integrate the European markets to encourage the flow of investments beyond national borders, diversify financing opportunities for companies and make it easier for retailers to also invest.

For his part, the Minister of Economy, Commerce and Business of Spain, Carlos Body, pointed out that, so far, the progress made in the capital market union has not been enough to close the financing gap between Europe and the United States. .

“We have to mobilize that private capital, especially from retail investors. We must manage to channel it more efficiently and ensure that our companies remain in our markets and our stock markets.“he told the press.

In addition to the boost to capital market unionwarn of a need to finance the ecological and digital transition and add priorities such as defense.

According to reports, 800 billion euros will be needed per year in Europe from 2031 to respect the commitment to reduce carbon dioxide emissions by 90% by 2040; and another 75 billion euros annually for NATO partners to fulfill their commitment to allocate 2% of their GDP to defense.