Brussels, 19 March 2025
The EU Commission has adopted its strategy for the Savings and Investments Union (SIU), a key initiative to improve the way the EU financial system channels savings to productive investments. It seeks to offer EU citizens broader access to capital markets and better financing options for companies. This can foster citizens’ wealth, while boosting EU economic growth and competitiveness.
Ursula von der Leyen, President of the European Commission, said: “With today’s proposal for a Savings and Investment Union we are achieving a double win. 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 capital to innovate, grow and create good jobs in Europe.”
The SIU is a horizontal enabler that will create a financing ecosystem to benefit investments in the EU’s strategic objectives. As highlighted in the Competitiveness Compass, Europe’s capacity to address current challenges – such as climate change, rapid technological shifts and new geopolitical dynamics – demands significant investments, which the Draghi report estimates at an additional €750-800 billion per year by 2030, and which is further impacted by increased defence needs. Much of these additional investment needs relate to small and medium sized enterprises (SMEs) and innovative companies, which cannot rely solely on bank financing. By developing integrated capital markets – alongside an integrated banking system – the SIU can effectively connect savings and investment needs.
The EU is equipped with a talented workforce, innovative companies and a large pool of household savings of around €10 trillion in bank deposits. Bank deposits are safe and easy to access, but they usually earn less money than investments in capital markets. The SIU can support the well-being of our citizens, by offering them the choice and opportunities to pursue better returns by putting their savings to work in capital markets.
At the same time, more investments in capital markets support the real economy by enabling companies across Europe to grow and thrive. This can create better jobs with more competitive salaries for European workers, and drive investment and growth across all economic sectors – especially in areas that the EU has identified as strategically important, such as technological innovation, decarbonisation and security.
Delivering the SIU is a shared responsibility of EU institutions, Member States and all key stakeholders, requiring concerted efforts and close collaboration across four strands of work:
- Citizens and Savings: Retail savers already play a central role in financing the EU economy via bank deposits, but they should have the opportunity, if they wish, to hold more of their savings in higher-yielding capital-market instruments including in view of retirement.
- Investment and Financing: To stimulate investments, and in particular those in critical sectors, the Commission will introduce initiatives aimed at improving capital availability and access for all businesses, including small and medium enterprises.
- Integration and Scale: Reducing inefficiencies stemming from fragmentation will entail important efforts to remove any regulatory or supervisory barriers to cross-border operations of market infrastructures, asset management and distribution of funds. This will enable businesses to scale efficiently across the EU.
- Efficient Supervision in the Single Market: The Commission will propose measures to ensure all financial market participants receive similar treatment, irrespective of their location in the EU. This will entail reinforcing the use of convergence tools as well as a reallocation of supervisory competences between national and EU levels.
Finally, the SIU also aims at enhancing the integration and competitiveness of the EU banking sector, including through the deepening of the Banking Union. The Commission will also assess the overall situation of the banking system in the Single Market, including its competitiveness.
Next steps
The actions proposed in this strategy will be further developed in the period ahead, in continued dialogue with stakeholders. Packages of measures will be taken in a limited range of areas, with a clear link to boosting competitiveness in the EU economy, with the most impactful actions being given priority in 2025.
Implementing the SIU will rest on both legislative and non-legislative measures, and on measures to be developed by the Member States themselves. Future success will require collaborative efforts from all stakeholders, including the Member States, European Parliament, private sector and civil society.
In Q2 2027, the Commission will publish a mid-term review of the overall progress in achieving the Savings and Investments Union.
More information
Quote(s)
Ursula von der Leyen, President of the European Commission:
With today’s proposal for a Savings and Investment Union we are achieving a double win. 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 capital to innovate, grow and create good jobs in Europe.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union:
Europeans are some of the best savers in the world, but many of their savings are sitting in low-yield deposit accounts. At the same time, Europe is struggling to meet its investment needs. With the SIU, we can create a virtuous cycle for the benefit of both citizens and companies, helping Europeans get a better return on their hard-earned savings, while bringing substantial investment into the economy. There are barriers we need to overcome to make this happen, and with this communication we have a guide for this vital work.
Source – EU Commission
Questions and answers on the Savings and Investments Union
Brussels, 19 March 2025
1. Why is the SIU so important now?
The SIU is particularly important in the current economic landscape, which is shaped by geopolitical shifts, climate challenges, and rapid technological advancements.
The EU must urgently unlock its potential if it is to realise its strategic priorities linked to long-term competitiveness, security and the digital and green transitions. The SIU is central to these efforts, aiming to support a deeper, more liquid and integrated EU financial system that channels more efficiently savings into productive investments.
By improving the attractiveness of the EU as an investment destination, the SIU will also contribute to the EU’s economic competitiveness and open strategic autonomy, as emphasized in the European Council and Eurogroup conclusions, European Parliament reports, European Central Bank statements and the reports of Enrico Letta and Mario Draghi. The Commission’s Competitiveness Compass has further highlighted that the Savings and Investments Union will serve as a horizontal enabler supporting the EU’s competitiveness across all economic sectors and helping to meet its significant investment priorities.
About 70% (€10 trillion) of citizens’ savings are held as bank deposits, with only 30% held in the form of capital markets instruments. Bank deposits are safe and easy to access, but they usually earn less money than investments in capital markets. There is therefore significant scope to fully unlock the potential of this capital so that it brings better returns to citizens. Investing directly in capital markets would also entail amore support to investments.
With the EU’s investment needs estimated at an additional €750-800 billion annually by 2030, and expected to be further impacted by increased defence needs, the SIU seeks to address the mismatch between savings and investment needs. It will do so by increasing efficiency and scale of investments via banking and capital markets, including institutional investors, so that companies can draw from the very significant capital in the EU. This is particularly crucial as companies that lead technological change often still struggle to procure necessary funds from EU markets.
This Communication aims to provide a strategic framework that encourages the effective alignment of all aspects of the EU financial system. It will include initiatives and policy actions along four strands of work: (1) Citizens and Savings; (2) Investments and Financing; (3) Integration and Scale; (4) Efficient Supervision in the Single Market. It also includes actions aimed at enhancing the integration and competitiveness of the EU banking sector, including through the deepening of the Banking Union.
2. How does this differ from previous Capital Markets Union action plans?
This new initiative draws on progress already made under the two Capital Markets Union (CMU) Action Plans and the parallel efforts to develop the Banking Union. The Savings and Investments Union takes a holistic approach, encompassing the entire EU financial system: capital markets and the banking sector together will enhance the efficient channelling of savings into investment, spur technological progress and innovation, facilitate structural changes towards a more sustainable and digital economy, finance EU priorities and strengthen the EU’s open strategic autonomy. By harnessing the strengths of both sectors, the SIU endeavours to increase the depth and liquidity of our single financial market to support the EU’s long-term economic objectives.
Moreover, compared to previous efforts of the Capital Markets Union, the SIU is designed to be more inclusive and citizen-focused, placing a renewed emphasis on supporting the wealth and well-being of citizens. Despite progress made, retail participation in EU capital markets remains limited. To address this gap, the Savings and Investments Union seeks to create an environment where citizens can proactively engage with capital markets, enabling them to better save for all life events, such as retirement, buying a home or supporting children’s education.
A key aspect of the SIU is its emphasis on joint efforts at the EU and national level to achieve its goals. It recognises the need for complementary measures by Member States to foster opportunities for their households to invest and facilitate access to finance for their firms. This approach complements the traditional focus of the CMU on market integration, acknowledging that building the SIU is a shared responsibility of both EU institutions and Member States. Future success will require collaborative efforts from all stakeholders, including the private sector and civil society.
3. What role do EU citizens have in the Savings and Investments Union?
EU citizens are at the heart of the SIU strategy, which aims to support them in building their household wealth and saving better for the future. The SIU aims to increase citizen participation in capital markets by broadening investment options and improving financial literacy. In SIU there is a focus on empowering and supporting citizens to invest with a view to increase their financial wealth, as well as to support a more competitive European economy.
Citizens enjoy full freedom to invest based on their personal choices: they will always have total control of where they want to keep and allocate their money. The SIU aims to establish a more supportive and enabling environment for citizens that may wish to invest in financial markets, allowing them to get better access to productive investment opportunities.
SIU will continue to support people saving their money in bank deposits. Banks are important financing sources for many companies, so those savings also help the economy and EU companies.
At the same time, EU citizens are not only beneficiaries but can be key enablers of the SIU as they have some €10 trillion in savings that are held in low yield bank deposits. Even a small proportion of this amount – at their choice and based on attractiveness of returns – flowing into capital markets would see a lot more financing options for EU companies.
There can be a virtuous cycle where citizens invest and this goes into EU companies. All companies stand to benefit but it is especially the case for innovative SMEs and those with high growth potential which need more equity financing. This can see good returns for citizens and also support local economic activity and job creation – which benefits us all.
4. How will citizens benefit from the SIU?
The SIU strategy presents a series of specific actions that will directly support citizens under the strand ‘Citizens and Savings’. The SIU is committed to ensuring that citizens who wish to do so have better opportunities to invest in capital markets. This means making sure that citizens are financially literate, have easy, simple and low-cost access to a wide variety of investment opportunities and that they are treated fairly.
While bank deposits are safe and easily accessible, they generate a relatively low return, primarily due to low-interest rates, when compared to investments in capital market instruments, thus being less effective in protecting from inflation. By reallocating a portion of their savings into productive investments, citizens can enjoy higher returns and build their household wealth, better preparing for future needs.
Experience in some Member States has shown the potential for savings and investments accounts to boost retail participation in capital markets, especially when such accounts are matched with appropriate incentives. The Commission will develop a European blueprint for savings and investments accounts or products for retail investors based on existing national best practices, including recommendations to Member States on the tax treatment for such investment accounts. Such savings or investments accounts, combined with adequate tax treatment, can widen the pool of funding available for EU companies and help to meet EU investment needs in the green and digital transitions, as well as in defence.
Actions on supplementary pensions, both by the EU and the Member States, will also be especially beneficial for citizens. The SIU seeks to develop and enhance supplementary pensions in a way that complements public pensions with a strategy to promote auto-enrolment in supplementary pension schemes. This has already been proven an effective way to increase participation rates of workers and enhancing returns for pension-holders in some Member States. Stronger and more vibrant supplementary pension systems help people better save for retirement and overall have positive financial and social benefits for citizens.
To ensure that potential new retail investors are well-informed about the implications and risks of investments, the SIU will continue working on financial literacy, a critical area for further development. Higher levels of financial literacy will help people make informed decisions on how and where they allocate their savings, which is vital for building a retail investment culture within the EU.
Finally, the Commission will also work with the European Investment Bank (EIB) Group, the European Stability Mechanism (ESM) and national promotional banks among others, to explore how to increase opportunities for retail investors to access suitable financial products that allow them to contribute to the funding of EU priorities.
5. How will EU businesses benefit from the SIU?
One of the key objectives of the SIU is to increase and facilitate access to finance for EU companies. By making it easier for companies to access diversified sources of finance, including cross–border in the EU, these companies can raise the funds they need to scale up and grow. This is essential for developing key sectors of the economy, such as, advanced technologies, sustainable energy, education, and defence. The SIU operates as an enabler for financing any businesses with a strong and clear business case.
This can have a multiplier effect on the economy, increasing economic activity, boosting competitiveness, creating employment opportunities, building up competences and knowledge via hubs with strong cooperation among universities, entrepreneurs, start-ups, corporates in several areas, and ultimately economic growth and prosperity.
Actions such as the implementation of the long-term equity treatment through the Solvency II delegated regulation for insurance companies, the clarification of equity investments into legislative programs by banks, the clarification of the prudent person principle for pension funds, the securitization review and the Commission’s collaboration with the EIB are carried out with this goal in mind.
6. What is holding back the development of stronger EU capital markets?
Despite progress, EU markets remain significantly fragmented. Many financial entities are not able to take advantage of the Treaty freedoms that should be inherent to our single market, being often subject to duplicative or differently applied requirements across Member States and missing out on potential economies of scale, efficiency gains and competitive pressure. Activities of trading and post trading market infrastructures are highly fragmented. Financial instruments are traded on 116 regulated markets and 148 multilateral trading facilities in the EU. Moreover, there are currently 26 central securities depositories and 14 central counterparties authorized in the EU providing settlement and clearing services. This fragmentation prevents building up scale and results in higher costs being passed on to users of financial services.
The SIU will take action on all these areas with different measures. For example, the Commission will propose an ambitious legislative package which will remove barriers to cross-border activities of trading and post-trading market infrastructures. It will also propose measures to remove remaining barriers to the cross-border distribution of investment funds within the EU and reduce operational barriers for asset managers operating as a group structure.
7. Why is the SIU strategy covering banking and what are you proposing on Banking Union?
Banks are crucial enablers of well-functioning capital markets.
First, strong European banks operating across borders are necessary for key capital market services such as listing and trading. Banks can make capital markets deeper and more liquid by acting as issuers of securities, and as intermediaries for issuance of securities (underwriting). They can provide services (such as hedging risks) and act as intermediaries for institutional, corporate and retail investors, and in some cases as investors and liquidity providers themselves.
Second, banks can encourage retail investor participation to capital markets, mobilising their savings, and ensuring financing for businesses.
Third, integrated banking markets would also contribute to a more stable and efficient allocation of funding across the EU economy, expanding their services offering and enhancing competition across the EU, also in economic downturns.
The progress on the Banking Union, notably the establishment of the Single Supervisory Mechanism and of the Single Resolution Mechanism are important steps serving financial stability and the integration of the banking market. Yet, we are still not reaping the full benefits of a fully integrated banking market and some of the key elements of the Banking Union are still missing. Therefore, the Communication makes a strong plea for further developing the Banking Union, including by finalising the ongoing reform of the bank Crisis Management and Deposit Insurance framework, to be followed by decisive steps towards the envisaged creation of a European Deposit Insurance Scheme (EDIS). The Commission will also produce a report assessing the overall situation of the banking system in the Single Market, including its competitiveness, standing ready to take measures where warranted.
8. What is the role of Member States?
The Savings and Investments Union recognises the crucial role of Member States in driving progress, particularly in areas where EU competence is limited, such as taxation and pensions. This approach reflects what the Eurogroup included in its recommendations in 2024, which emphasised the importance of ‘bottom up’ and coordinated actions by Member States to complement Commission-led workstreams.
To ensure the success of the Savings and Investments Union, and based on best practices identified, the Commission intends to guide Member States and calls on them to take action. Furthermore, the Commission will coordinate and support Member States’ implementation of commonly agreed rules. This collaborative approach will enable the implementation of effective solutions at national and EU level. The Commission will support these efforts by Member States, facilitating the sharing of knowledge and expertise, helping them overcome common challenges and achieve their goals.
Moreover, the Commission can accompany groups of Member States deciding voluntarily to act in specific areas not covered by EU initiatives where the EU-wide consensus is difficult to achieve and where such action is taking the SIUs objectives further or faster. Proposed actions should be designed in a way that would be easy for other Member States to join, and must not add to fragmentation or an unlevel playing field in the single market.
9. Would it not be more important to strengthen banks’ capacity to finance investment than developing capital markets?
The EU financial system has traditionally been dominated by banks and banks have a central role in financing economic activity in the EU. However, this proved to be a disadvantage in the aftermath of the financial and sovereign debt crisis. The Banking Union was one reaction to this, leading to the creation of single supervision for systemic banks in the euro area. Moreover, the weaker economic rebound highlighted the need for a more diversified financial system. The CMU was created as a complementary strategy to make the EU financial system more diversified and reduce bank over reliance and related risks.
Although banks have a central role in financing economic activity in the EU, bank lending is not readily available for some types of companies. The traditional bank financing model is well-suited for established firms with a track record and collateral, but less suitable for innovative and fast-growing companies, which often require alternative financing options, such as equity, to support their expansion. That is because firms that build their activity on intangible capital are often perceived as too risky for bank credit and need to find investors that are willing to embrace that risk. Capital markets have a crucial role in matching investors’ preferences with corporates’ needs. Market prices help discover shortages and allocate risks, thereby fostering innovative activity and channelling financing to most promising investment projects.
10. What is the value added of EU capital markets over a well-developed national capital market? And how can local / smaller capital markets benefit from it?
Integrated EU capital markets aconnect local and smaller capital markets to larger and diverse pools of capital, enhancing their capacity to finance real economic activities. This integration facilitates the flow of capital across borders within the EU, offering firms and investors access to a broader array of investment opportunities, while simultaneously contributing to spreading risks more widely.
For local or smaller capital markets, the benefits of integration are substantial. It enables successful companies operating in these markets to access the capital they need for growth, innovation, and competitiveness. This is particularly crucial for funding critical sectors such as digital technology, defence, green, and infrastructure development.
By being part of an integrated EU capital market, local markets can thrive, getting access to broader and deeper pools of capital, fostering local investment while enjoying the resilience and dynamism that comes from being part of a larger, interconnected financial ecosystem. Moreover, integration does not mean local markets disappear. On the contrary, their activity remains vital, as it often reflects unique economic circumstances.
AREA SPECIFIC QUESTIONS
11. What is the Commission doing on pensions?
The SIU strategy aims at developing and enhancing supplementary pensions to ensure financial security for EU citizens. Our efforts are directed towards creating strong multi-pillar pension systems which include occupational and personal pensions, on top of public ones. The objective is therefore to complement state pensions, not replacing them.
By reviewing the existing frameworks for Institutions for Occupational Retirement Provision (IORPs) and the Pan-European Personal Pension Product (PEPP), we aim to improve their effectiveness and attractiveness, including cross-border accessibility.
Another key element of our strategy is promoting auto-enrolment in occupational pension schemes, which has been proven effective in increasing participation rates of workers and enhancing returns for pension-holders, also thanks to investment diversification and greater scale of pension funds. The Commission will also promote the use and best practice of pension dashboards, which will provide Member States with a better view of the sustainability and adequacy of their pension system, as well as of pension tracking systems which allow citizens to get an overview of their future retirement income.
Our approach on pensions is about encouraging better financial planning, enhancing the options available to EU citizens, and making it easier for individuals to participate in pension schemes that deliver better performance for long-term savers.
12. Why is venture capital and growth capital important for the EU?
Financing companies, especially high tech and innovative ones, is crucial for the EU to remain competitive in the 21st century. The EU lags behind the US in the availability of capital for innovative start-ups and scale-ups (we have about six times less of so-called “risk capital”) and the EU risks being surpassed by China.
As a result, our innovative companies often seek capital from third countries and subsequently tend to move there, to the detriment of innovation, growth, employment or even tax income in the EU. Some of these companies could be in sectors of high strategic interest for the EU. In a complicated geopolitical landscape, the EU cannot afford to miss out on such innovation and growth opportunities and cannot rely only on foreign capital for financing its future tech and industry champions.
To reverse this trend, we must address the existing barriers to equity investment, including fragmentation, regulatory complexity, high transaction costs and unlock institutional investments. A series of actions are envisaged to incentivise institutional investors to invest more in equity, covering insurance companies, banks, and pension funds. Also, specific venture capital vehicles such as the European Venture Capital (EuVECA) label will be made more attractive. By creating a more efficient and appealing financial ecosystem, the EU can retain its most promising businesses, foster a more vibrant entrepreneurial scene, and unlock new opportunities for growth and investment. This, in turn, will have a positive impact on the EU’s long-term economic prospects, making it a more competitive destination for investors.
13. The Communication mentions that banks investing in equity under legislative programmes may be granted a favourable treatment. What does it mean?
Legislative programmes are schemes established by binding legislation, providing both public and private financing to businesses operating in specific sectors of the economy.
Banks authorised by the supervisor to invest in equity assisted by eligible legislative programmes would enjoy a favourable prudential treatment for the calculation of their capital requirements. In concrete terms, a bank investing in equity under an eligible legislative programme would have to put aside less regulatory capital than the capital needed when it invests in other equity investments. This would also apply to banks that invest in a fund of funds structure that is part of a legislative programme and that invests in venture capital or private equity funds.
The rationale behind such a favourable treatment is to create the conditions for a virtuous circle in which public resources help mobilise private capital toward targeted investments in those sectors with an equity-gap including innovative startups and scaleups. In order to preserve the soundness of the investing banks, legislative programmes must satisfy a set of conditions to be considered eligible.
The European Commission is going to publish guidance to ensure that the rules on legislative programmes are applied consistently in the Single Market, promote broader use of these programmes and ultimately increase equity investments. The forthcoming guidance will provide banks with the clarity needed to confidently engage in equity investments that form part of legislative programs.
14. Will you propose a Single supervisor for capital markets as proposed in the Draghi or Letta’s report?
The European Commission recognises the importance of strong, coordinated, efficient supervision to ensure the efficiency, stability, and integrity of the EU’s financial markets. Efforts are focusing on improving the current framework to facilitate better cross-border collaboration and more uniform application of rules across Member States.
We encourage the European Supervisory Authorities (ESAs) to effectively use their supervisory convergence tools to ensure consistent and robust oversight across the EU. At the same time, we recognise that there are limits to how much convergence tools can achieve, especially in the case of market players with significant cross-border activities, like big market infrastructures and asset managers.
The Commission will follow up with proposals for an upcoming review the European Supervisory Authorities framework, which aim to achieve a more unified and harmonised supervisory framework across the European Union. This review is expected to include the potential transfer of certain tasks to EU-level supervisors, with the goal of enhancing supervisory efficiency and coherence, and ultimately strengthening the stability of the EU’s financial system.
15. What are you planning to do in the area of securitisation and why is it important for the SIU?
Securitisation is the transaction by which banks “package” loans into securities and then sell them to market investors. The transaction allows banks to transfer the risk of some loans to other entities, such as long-term investors (insurance firms, asset managers, etc.) and to use the freed-up space in their balance sheet to extend new loans to households and firms.
A well-functioning, safe securitisation framework is important for the SIU for two main reasons. First, it can broaden the offer of securities on European markets. Second, by allowing banks to transfer risks to other parties, it frees up resources from banks balance sheets and allows banks to better support the real economy unlocking capital for innovation and broadening the investor base across European borders. This year, the Commission will make proposals on securitisation, focusing on simplifying due diligence and transparency, and adjusting prudential requirements for banks and insurers.
16. Why do we need a financial literacy strategy?
Improving financial literacy is crucial for building an EU investor culture and enhancing the financial wellbeing and awareness of our citizens. Any effort to increase participation of retail investors in capital markets needs therefore to be accompanied by efforts to improve financial literacy levels, which are still quite low in the EU. Awareness-raising and financial literacy initiatives can contribute to educate potential new investors on risks, volatility and possible losses.
A Eurobarometer survey from July 2023 showed that 82% of EU citizens lack a high level of financial literacy. This varies greatly between countries and within different demographic groups, with women, young people, and older adults generally having lower literacy levels.
The Commission therefore will propose a financial literacy strategy designed to empower citizens, boost their awareness, and encourage their participation in capital markets, thus creating a more “investment savvy” culture. Improving financial literacy levels in the EU will equip individuals with the knowledge to make informed investment decisions. This strategy will also promote the sharing of best practices among Member States and provide guidance to enhance current financial competence frameworks.
17. What do you mean with “consolidation of trading and post-trading infrastructures? What are your plans in this area?
Increasing integration and interoperability of trading and post-trading infrastructures is crucial for reducing transaction costs for all financial market participants.
The fragmentation of post-trading and market infrastructure has been a longstanding challenge, highlighted in the reports by Draghi and Letta. Earlier findings like the Giovannini barriers or the European Post-Trade Forum report already identified barriers to the integration of market infrastructures. While recent EU rules, such as the regulation on Central Securities Depositories and its subsequent review have made progress in addressing some of those barriers, some issues remain. Barriers include fragmented supervision and divergent national corporate, securities, insolvency and tax laws. Market participants are also facing practical obstacles that are holding back the business. We are in the process of identifying barriers to market-led consolidation and integration limiting efficiency and impeding market operators from harnessing the scale effect of a more integrated market. In this context, the Commission has launched an external study to identify barriers affecting the consolidation of trading and post-trading infrastructures, with findings expected to be published in Q3 2025.
To address barriers to more integrated trading and post-trading infrastructures, the Commission will come forward with an ambitious package of legislative proposals including rules on central securities depositories, financial collateral and settlement and on the trading market structure, with the aim of further removing barriers to cross-border activity, modernising the legislative framework to recognise new technologies, while reducing administrative burden.
18. What is the role of the European Investment Bank in advancing the Savings and Investments Union?
Successful EU and national programmes are key to developing venture and growth capital to support startups and innovative companies, by leveraging public funds to attract institutional investments into this asset class.
The Commission will work with the EIB Group, national promotional banks and private investors to unlock more private investments, notably into the venture capital and growth capital segment. In particular work will focus on the scale up TechEU investment programme that aims to bridge the financing gap for disruptive technologies and scale-up companies which invest in new technologies, such as artificial intelligence, clean tech, quantum computing, semiconductors, and life science. The Commission will explore ways to support the European Tech-Champions Initiative 2.0 (ETCI), to be launched by the European Investment Fund (EIF) by 2026. This structure will pool public and private capital to close the funding gap of European scale-ups.
19. The Commission has committed to reducing the regulatory burden on companies. Will the Savings and Investments Union add new red tape?
The objectives of simplification and burden reduction will be a key consideration when implementing the SIU.
For example, in the negotiations on the Retail Investment Strategy, the Commission will remain vigilant that the outcome minimises regulatory burden. The Commission will also ensure that the implementation of the listing rules reduces regulatory burden and costs for companies. Moreover, the Commission will take action to remove differences in national taxation procedures which create administrative burden and barriers to cross-border investment. The Commission will also work with the European Supervisory Authorities and National Competent Authorities to implement the simplification agenda.
More generally, the Commission will reduce transposition burdens and narrow gold-plating opportunities, notably by proposing Regulations instead of Directives. When financial market participants are subject to multiple rules and supervisors, it will be important to eliminate unnecessary duplications.
More information
Source – EU Commission
Remarks by EU Commissioner Albuquerque on the Savings and Investments Union Communication
Brussels, 19 March 2025
“Check against delivery”
Good morning and thank you all for being here.
Today, we are launching the Savings and Investments Union.
This represents an opportunity to step forward for Europe’s financial and economic future. This is a defining moment for the EU.
One that can make our economy stronger, more competitive, and better prepared for the challenges ahead.
The reality is clear: despite EU’s enormous resources and achievements Europe’s economy is underperforming.
This is not new and the global landscape is shifting faster than ever.
We are facing both a challenge and an opportunity for EU’s huge potential.
If we fail to act – if we do not respond with urgency and collective ambition – we risk losing out on our citizens and businesses expectations and our place as a leading global voice.
And this is not an option.
The strategy for the Savings and Investments Union provides a path forward to drive economic growth and prosperity in Europe with the development of the single market on finance.
My vision for a successful European Savings and Investments Union is:
An EU where households have more opportunities to build wealth and save for the big events in life;
An EU that has a faster growing economy with more and better jobs, where companies strive and innovate;
And an EU with enough investment flows to meet the needs of European companies, including those which are critical for our strategic priorities, considering the digital, climate and social transitions, and security and defence.
Our goal must be to make investing in Europe the obvious choice, by creating the conditions that will allow offering attractive opportunities, competitive returns and low barriers.
To ensure we get there:
We must act swiftly and decisively to deal with current inefficiencies. This will require dealing with topics that have been put aside for too long and will tackle vested interests and barriers.
We must see real change in the functioning of our single market for financial services and its ability to finance projects throughout the EU, from the local companies to pan-European corporates.
The SIU will not be built from Brussels alone. It will require joint efforts from EU institutions, Member States, as well as the private sector. It is a shared responsibility.
And most importantly, we must put our citizens first. By prioritising household wealth creation, we can give them more opportunities and spark a new wave of capital throughout Europe.
Growth isn’t just a by-product of the Savings and Investment Union; it’s a central objective, because maintaining Europe’s economic power is also a matter of our collective security.
The Savings and Investments Union is a “sector agnostic enabler” for the financing of all the priorities listed in the Competitiveness Compass and ReArm Europe. Its aim is to make the EU’s financial market deeper and more liquid and thereby more efficient in channelling financial resources to productive investments.
It’s about strengthening Europe for the challenges of the present and the future. It’s part of our Readiness 2030 strategy.
There is strong political ambition for more public investment in Europe’s strategic priorities, yet public funding alone won’t be enough. Recent communications from the Commission set a clear business case for our industries and our economy to strive. These form the basis of our political commitment. These set clearly our priorities and our direction of travel.
Creating the right financing ecosystem in Europe, will facilitate connecting those priorities with citizens and businesses. We must ensure that companies have the best possible path to bring solutions– from research and development right through to delivery.
We need to improve how we mobilise capital in Europe.
The Savings and Investments Union has been designed to allow this financing ecosystem to emerge.
Our strategy is based on four pillars: 1) Citizens and Savings; 2) Investment and Financing; 3) Integration and Scale and 4) Efficient Supervision in the Single Market.
Its implementation will be guided by the imperatives of simplification, burden reduction and digitalisation.
And it will also rely heavily on implementation and enforcement.
[SIU Overview]
First, citizens and savings.
Currently, too few European citizens make a decent return on their hard-earned savings.
At least not in a simple and cost-efficient way.
In Europe, we have over 10 trillion euro sitting in low yield deposit accounts. There are good reasons for keeping money in safe bank accounts, but there are also missed opportunities.
Lacking efficient capital markets in Europe, those who are motivated enough to find a way to invest their money, often turn to foreign markets. And too often it is easier to do that than to invest it in our single market.
This is regrettable and represents a loss to us all. It also means that businesses in Europe have less European financing options.
On the other hand, much of the returns made in Europe’s stock markets often benefit pension funds from third countries, and only marginally local pension funds or retail investors. This is a missed opportunity.
We will take action to make investing in the EU easier and more beneficial for our citizens.
To achieve this, we will put forward a European blueprint for savings and investments accounts for retail investors, based on existing national best practices, accompanied by recommendations on the tax treatment for such accounts.
We will also present a financial literacy strategy to empower citizens, raise awareness and increase their participation in capital markets.
We will also work in the area of supplementary pensions, whilst fully respecting Member States competence to devise muti-pillar pension systems and the social dialogues.
We will put forward recommendations to promote auto-enrolment in occupational pension schemes, pension tracking systems and dashboards which have proven to be effective in raising awareness and attracting more people into supplementary pension funds and other retirement products. We will also review the current EU supplementary pension framework, namely the regulation on the Pan-European personal pension product and the IORP Directive, to increase its effectiveness and attractiveness.
Second, investment and financing.
Too often European companies, in particular young innovative ones, have to look elsewhere for funding and, indeed, many of them choose to take their business outside Europe.
One of the key objectives of the Savings and Investments Union is to increase and facilitate access to finance for EU companies – wherever they’re located in the Single Market.
By making it easier for companies to access diversified sources of finance, including cross–border in the EU, they can raise the funds they need to grow and create jobs here in Europe.
For this, we will look at multiple ways of improving the availability of capital, in particular through institutional investors. We will address barriers for insurers, banks and pension funds to invest in equity, including in venture capital.
We will review the EU rules on securitisation, focusing on due diligence, transparency and prudential requirements for banks and insurers, as this will free up resources from banks and allow to better support companies.
We will leverage on public funding through the EIB Group and national promotional banks, to attract private investors into co-financing projects that support our economy and implement our political priorities.
We will also revise the legislation on European venture Capital Funds. This will help to better facilitate equity financing for our high tech and innovative companies.
Third, integration and scale.
We have to promote operational efficiency in our markets.
European firms are unable to enjoy the scale and synergies of the Single Market.
This is costly and represents a competitive disadvantage for the EU.
Fragmentation persists despite the existence of passports and advanced harmonisation of the regulatory framework. This situation benefits certain actors, and we can’t stand for this.
I intend to be vocal in calling out those who stall our joint progress and hold back European capital market integration.
Furthermore, we will present ambitious legislative proposals to remove regulatory and supervisory barriers to cross-border operations of market infrastructures, asset management and distribution of funds.
This will enable financial market participants to grow efficiently across the EU and to lower costs of financial services for businesses and citizens.
Finally, efficient supervision in a Single Market.
We need strong and harmonised supervision to ensure the strength, stability and integrity of EU capital markets.
It’s crucial to ensure all financial market participants can count on equal treatment and broadly similar decisions when approaching supervisors, irrespective of where they are located in the EU.
Convergence is a tool that has shown its merits, but also its limits. Tolerating duplications, divergences or supervisory inefficiencies adds even more to the costs of investing in the EU and erodes stakeholders’ trust.
It is our responsibility to act.
The Commission will present a legislative proposal to achieve a more unified supervision of EU capital markets. This will include measures to strengthen convergence tools but also will envisage transferring certain supervisory tasks from national to EU supervisors.
The Savings and Investments Union takes a holistic approach, encompassing the entire EU financial system. Europe’s capital and banking markets are deeply connected. Strong capital markets need a strong banking sector. Banks are not just intermediaries – they are crucial players in the Savings and Investment Union. They provide financing, manage risk, and support European businesses.
Yet, Europe’s banking framework remains incomplete and our banking market fragmented And that’s a problem we must address. The Banking Union contributes not only to financial stability but also to better integration of the banking sector. We need large and diversified banks – at the scale of the EU economy, not just at the national scale. We need them to compete at global level. The development of the Capital Markets Union must be supported by a competitive banking sector, with pan-European actors.
That’s why it’s paramount to continue working on the reform of the bank Crisis Management and Deposit Insurance framework, as well as on the development of a European Deposit Insurance Scheme.
The Commission will also deliver a report on the state of the banking sector, including its competitiveness in the course of 2026, whilst closely monitoring developments in the global market. We will continue to work to preserve a level playing field, while preserving financial stability.
Following extensive consultations throughout Europe, my services have brought the views of 27 Member States into the Savings and Investments Union.
An effective single market for capital depends on thriving local markets – both need to develop in tandem. Member States have confirmed that they share the objectives of the Savings and Investments Union. And we will need their commitment to act, especially in areas where the EU has limited competences Delivering is a shared responsibility.
The Commission has put the strategy forward, we will now deliver and engage with co-legislators to translate it into action.
Source – EU Commission