ECB warns of risks in AI stocks and government bond markets

High valuations of companies linked to artificial intelligence, stress in government bond markets and possible losses at investment funds are among the main risks to financial stability. European Central Bank (ECB) Vice-President Boris Vujčić made the assessment on 2 November, according to Reuters.

The warning comes amid volatile shares in major technology companies and doubts about whether heavy investment in AI will deliver the expected returns. Vujčić noted that European funds also hold investments linked to the US technology sector. A drop in those valuations could therefore have effects beyond US stock exchanges.

The second concern is sovereign debt. Rising bond yields make borrowing more expensive, especially for heavily indebted countries. Vujčić argues that when fiscal policy is the cause of market stress, governments must take primary responsibility for the response. The ECB monitors bond markets but cannot replace national fiscal decisions.

At a Central Bank of Ireland conference in Dublin, Vujčić also addressed the wider problem of Europe's fragmented financial market. In his published speech, he noted that barriers to investment between the euro area and the United States have fallen more quickly in recent years than barriers between euro area countries themselves. In his view, a more integrated European market would help economies absorb external shocks.

The ECB is due to publish its next semiannual Financial Stability Review on 18 November. The latest comments are an assessment of risks, not an announcement of a new decision on key interest rates.

Photo: Igor Flek / Unsplash — an illustrative panorama of Frankfurt, Unsplash licence.

Sources: Reuters, November 2, 2026; ECB — speech by Boris Vujčić, 2 November 2026.