Raposo urges investment that withstands Europe's uncertainty
Europe must prioritise investments that retain value across different futures, Banco de Portugal Vice-Governor Clara Raposo said on October 1, 2026. She addressed the eighth Capital Markets Seminar in Luxembourg.
Waiting carries its own cost
Raposo argued that delaying irreversible investment preserves flexibility but also postpones productive capacity, infrastructure, technology adoption and knowledge accumulation.
Simultaneous delays by firms, households and governments weaken demand, innovation and potential growth.
She identified climate and energy resilience, defence capabilities and innovation as priorities across alternative futures.
Limited fiscal space requires public support to address market failures and attract rather than replace private capital.
She urged deeper, integrated European capital markets, completion of banking union and more equity financing for innovative firms and intangible assets.
Consumer protection, she said, requires financial literacy rather than eliminating risk.
Climate losses sharpen spending choices
EU weather and climate losses reached about €738 billion in 1980–2023, including more than €160 billion in recent years.
Network for Greening the Financial System scenarios put disorderly-transition GDP losses at around 1–1.5 percent by 2030, more than twice orderly-transition costs.
Banco de Portugal analysis links faster net-zero transition to lower bank credit risk.
European Central Bank analysis finds defence capital investment supports growth more than personnel spending; imports limit domestic benefits, while personnel costs can add inflation pressure.
Stability, not investment selection
Raposo places investment selection outside central banks' remit.
Their contribution rests on price stability, financial resilience, risk assessment and institutional trust.
Rising sovereign yields and responsive non-bank investors make funding-market transmission a central concern.