Madouros outlines conditions for sustained investment growth

Vasileios Madouros outlined three critical pillars for fostering a sustained increase in global investment over the next decade.

First, a stable macroeconomic environment, anchored by credible monetary and fiscal policies, is paramount.

This includes achieving and maintaining price stability to reduce uncertainty for long-term capital allocation.

Second, the development of deep and liquid financial markets is essential to efficiently intermediate savings into productive investments, particularly in emerging economies.

Madouros highlighted the need for diversified funding sources beyond traditional bank lending.

Third, predictable and transparent regulatory frameworks are crucial to instil investor confidence and reduce policy-related risks.

He noted that policy consistency, rather than frequent shifts, provides the certainty required for large-scale, long-horizon projects.

These foundational elements collectively create an attractive landscape for both domestic and international capital.

Despite the outlined opportunities, Madouros acknowledged significant global headwinds that could impede investment growth.

Geopolitical fragmentation and rising protectionist measures pose risks to cross-border capital flows and supply chain resilience.

He emphasized the need for international cooperation to maintain an open and rules-based trading system.

Furthermore, financing the green transition represents a monumental investment challenge.

While public sector initiatives can de-risk early-stage green projects, Madouros stressed that private capital must ultimately provide the majority of the funding.

He called for innovative financial instruments and blended finance solutions to mobilize the necessary resources for climate-related infrastructure and technologies.

Digital transformation also requires substantial investment in new technologies, skills, and robust cybersecurity measures to unlock its full potential.