Financial Markets Underestimate Geopolitical and Fiscal Risks, ECB Warns
The European Central Bank (ECB) delivered a stark warning today, asserting that financial markets are dangerously underpricing the twin threats of escalating geopolitical tensions, particularly from the Middle East, and the mounting burden of government debt across the Eurozone. Speaking through its latest Financial Stability Review, the central bank underscored a pervasive market complacency, suggesting investors have become overly sanguine about tail risks that could rapidly derail economic stability.














