The European Banking Federation (EBF) has presented a report on Europe’s financing needs in the current context of global uncertainty. The analysis, conducted independently by Oliver Wyman, estimates that Europe faces an annual investment shortfall of €1.4 trillion in strategic sectors such as energy, cybersecurity or defense, a figure that is a significant increase from the €0.8 trillion estimated in the 2024 Draghi report.
European banks currently cover more than 70% of Europe’s financing needs, making their role more relevant than ever to strengthen the competitiveness of these investment-intensive projects.
Institutions reach this crucial moment in a position of strength. But in order to unfold their full potential and expand their financing capacity, it is necessary to make progress in regulatory and supervisory simplification. Also in market integration, to facilitate the channeling of savings towards productive investment.
This was reflected in the event held in Brussels to present the document, which was attended, among others, by the director general of the AEB, María Abascal, and the former Italian prime minister, Enrico Letta. “If regulation and supervision are the medicine to safeguard the health of the European financial system, determining and adjusting the right dosage is essential to enable the sector to significantly increase its contribution to growth,” the EBF has assured.
In this new report, Oliver Wyman provides an updated assessment with a breakdown of additional investment needs in Europe, as well as an analysis of the capacity of European banks to finance them and the mechanisms that could enable them to play a greater role in boosting growth and competitiveness.
