The opportunity, if they wish, to maintain a larger part of savings In the middle of the capital market with higher returns (eg government bonds), with the aim of security, inter alia, the EU plans to give private savings, according to a Commission.
Specifically, today (19.3.25) it was announced that the Commission has approved its strategy for the SIU, a key initiative to improve the way the EU financial system is channeling savings to productive investment.
It seeks to provide EU citizens broader access to capital markets and better business funding options.
This can enhance citizens’ wealth, while boosting the economic growth and competitiveness of the EU.
Ursula von der Leyen, President of the European Commission, said: “With today’s proposal for a savings and investment union we achieve a double victory. Households will have more and safer opportunities to invest in capital markets and increase their wealth. At the same time, businesses will have easier access to funds to innovate, develop and create good jobs in Europe. “
SIU is a horizontal factor that will create an funding ecosystem for the benefit of investment in EU strategic goals.
As highlighted in the Competitiveness Compass, Europe’s ability to meet current challenges-such as climate change, rapid technological changes and new geopolitical dynamics-requires significant investments, which are estimated at 750-800 billion euros in the Draghi report by 2030 billion.
Much of these additional investment needs are small and medium -sized (SMEs) and innovative companies, which cannot be based solely on bank funding.
With the development of integrated capital markets – along with an integrated banking system – the SIU can effectively link savings and investment needs.
The EU has a talented workforce, innovative businesses and a large household savings tank, about 10 trillion euros in bank deposits. Bank deposits are safe and easily accessible, but they usually make less money than investment in capital markets.
The SIU can support the well -being of our citizens, offering them the choice and opportunities to seek better returns by placing their savings on the capital markets.
At the same time, more investment in capital markets support the real economy, allowing businesses across Europe to grow and thrive.
This can create better jobs with more competitive salaries for European workers and can push investment and growth in all economic sectors – especially in areas where the EU has described as strategic importance, such as technological innovation, carbonate exemption and safety.
The implementation of the SIU is a common responsibility of the EU institutions, the Member States and all the basic parties concerned and requires coordinated efforts and close cooperation in four areas of work:
1. Citizens and savings
Retail savings are already playing a central role in funding the EU economy through bank deposits, but should have the opportunity, if they wish, to maintain a larger part of their savings in the mid -capital market with higher returns, including retirement.
2. Investments and funding
In order to stimulate investment, and in particular those in critical sectors, the Commission will introduce initiatives with the aim of improving the availability and access to funds for all businesses, including small and medium -sized enterprises.
3. Complete and scale
The decrease in ineffectiveness resulting from fragmentation will entail significant efforts to remove any regulatory or supervisory obstacle to the cross -border functions of market infrastructure, asset management and capital distribution. This will allow businesses to escalate effectively throughout the EU.
4. Effective supervision on the single market
The Commission will propose measures to ensure that all participants in the financial market will be treated with similar treatment, regardless of their location in the EU. This means to enhance the use of convergence tools as well as the redistribution of supervisory powers between national and European level.
Finally, SIU is also aimed at enhancing the integration and competitiveness of the EU banking sector, including through the deepening of the banking union. The Commission will also evaluate the overall state of the banking system in the single market, including its competitiveness.
Subsequent steps
The actions proposed in this strategy will be further developed in the coming period, in a continuous dialogue with the parties concerned. Bunches of measures will be taken in a limited range of sectors, with a clear connection to the enhancement of the competitiveness of the EU economy, with the priority of the most impact actions in 2025.
The implementation of the SIU will be based on both legislative and non -legislative measures, as well as on measures developed by the Member States themselves. Future success will require collective efforts by all stakeholders, including Member States, the European Parliament, the private sector and civil society.
In the second quarter of 2027, the Commission will publish an intermediate overview of the overall progress to achieve the savings and investment union.