Verena Ross: There are multifaceted risks to the global economy

Multiple and multifaceted risks to European and global markets should keep investors on their toes, Verena Ross, the Chair of the European Securities and Markets Authority (ESMA) has warned.

In her opening speech during the second day of the 10th International Funds Summit & Expo presented by CIFA and Invest Cyprus, the head of ESMA said that while the development of the investment sector remains at a good level, the European as well as the international economy are facing a number of challenges, requiring special attention from investors.

We have to emphasise the fact that there are financial stability issues, she told audiences in Nicosia referring to a number of risks that lie ahead.

As Ross underlined, events of the past showed how contagious their impact can be on all economic sectors.

The European Commission is conducting consultations on how to develop a framework for protection against non-economic factors, she added, going on to address at length the effects that geopolitical developments have on markets, as well as the risks of cyberattacks.

At the same time, she laid out the direction that the EU is following, that of sustainable development and strategies, with a long-term perspective, noting that the EU urgently needs more diversified markets.

Investors must adapt to the current economic situation, she explained in the context of her commentary on the current economic indicators, to then reiterate the necessity of investing in projects that focus on issues of sustainability.

Appropriate regulations further the purpose of making markets work more efficiently, she added shortly after talking about the contribution of compliance policies.

Moreover, she said the investment funds sector had shown an increase since 2023, going on to emphasise that the economic environment will continue to register challenges and that the risks faced in the EU are also being faced at an international level.

In closing, and after presenting a positive picture of the investment sector, Ross once again warned the investment community to remain vigilant due to the multi-layered risks and contingencies of the current era.

(Source: InBusinessNews)