In a speech in Vienna, European Central Bank President Christine Lagarde called for Europe to accelerate artificial intelligence adoption while building domestic computing capacity, models and access to frontier technology. She argued that AI could raise euro area productivity by up to 4% over a decade, helping offset demographic pressures and finance strategic investment, but warned that reliance on foreign providers could expose European data, economic activity and access to critical technology. Euro area firms are expected to devote about 10% of total investment to AI in 2026, although US digital investment and workplace use continue to outpace Europe. Lagarde set out three priorities for combining growth with economic sovereignty: expanding European computing infrastructure, developing open models capable of handling most tasks and preserving an indispensable position in the global AI supply chain. Europe has 5% of global AI computing capacity, and its data center capacity shortfall is projected to increase more than sixfold within a decade. Closing that gap could cost up to EUR 600 billion, including chips. The financing needs reinforce the ECB’s broader case for a savings and investments union that can channel more of the EUR 1.4 trillion saved annually by European households into domestic equity, bonds, private credit and securitization. Lagarde urged action on European Commission proposals, arguing that bank lending alone cannot provide the scale and risk-bearing capital required. She also identified potential losses from a correction in US technology markets as a pressing issue for supervisors and regulators because euro area households hold about EUR 440 billion in US technology firms, mainly through investment funds.
2026-09-14European Central Bank
European Central Bank President Christine Lagarde calls for deeper capital markets to finance sovereign AI capacity
European Central Bank President Christine Lagarde called for deeper European capital markets to finance AI computing capacity, open models and access to frontier technology. She said rapid AI adoption could lift productivity by up to 4% over a decade, while closing Europe’s data center gap could cost as much as EUR 600 billion. The speech positions AI as a central purpose for the savings and investments union and warns supervisors to prepare for possible spillovers from a correction in US technology markets.