Lagarde and Van der Bellen Urge EU Capital Markets Union for AI

European Central Bank President Christine Lagarde and Austrian Federal President Alexander Van der Bellen have called for a rapid expansion of the EU's capital markets union to support artificial intelligence development. Lagarde warned that Europe's technological sovereignty is at risk due to inadequate financing, drawing parallels with the period before 1873 when European savings were used to finance railway construction in the US.

The ECB President estimated that up to $600 billion will be needed over the next decade to catch up on data centers and chips. Without its own capacities, Europe risks becoming dependent on foreign technology providers, Lagarde said. She emphasized that a rapid deployment of AI could increase productivity growth in the Eurozone by up to 4% over a decade.

Van der Bellen called on business leaders to invest, hire staff, and be innovative. The lack of venture capital has driven young technology companies to the US for decades, both emphasized. Only an integrated European capital market can mobilize private savings to ensure the continent's technological independence.