"Launch of the European Union of Savings and Investments"
The current geopolitical context, combined with the urgent need to finance the green and digital transitions in Europe, makes it increasingly necessary to unlock the full potential of the EU’s currently fragmented capital markets. The goal is to make them more efficient and better equipped to compete with more developed markets elsewhere.

In this context, the European Commission has presented its long-awaited strategy for the Savings and Investments Union (or SIU for short). This initiative is driven by the Commission’s Competitiveness Compass for the EU, which sets out new strategic guidelines to foster European growth and competitiveness. The SIU aims to improve the way the European financial system’s substantial savings are channeled into investments in European capital markets. In doing so, it seeks to offer more attractive investment opportunities to retail savers and provide companies with additional sources of funding.
The SIU aims to improve the way the European financial system’s substantial savings are channeled into investments in European capital markets
The initiative builds upon objectives previously outlined in earlier efforts such as the Capital Markets Union and the Banking Union, which are viewed as being complementary. The actions proposed as part of this strategy are built around four pillars.
- The first is to encourage retail investors to channel their savings into capital markets. To succeed in this task, the Commission is championing the creation of attractive European financial products or savings and investment accounts to make participation easier and more appealing among retail users. It is also calling for the development of supplementary private pension schemes alongside public systems.
- The second pillar focuses on expanding the availability of capital across the EU to support investments and lower financing costs for European businesses, including SMEs and startups. Proposals here include encouraging institutional investment in markets, improving access to financing for startups, simplifying listing rules, removing cross-border tax barriers, and streamlining securitization regulations.
- The third pillar aims to do away with regulatory, supervisory, and political fragmentation in European markets, as it currently hampers efficiency and prevents market participants from benefiting from the scale of an integrated market. To get around national barriers relating to trading and post-trading platforms and reduce unnecessary red tape for asset managers, the Commission is calling for legislative proposals targeting central securities depositories, financial collateral, and market structure. The aim is to streamline cross-border activity and enhance price discovery and execution quality on trading platforms to facilitate fund distribution across the EU.
- The final pillar aims to ensure a level playing field when it comes to financial oversight, so that all market participants are treated equally regardless of location. In this regard, the Commission even proposes transferring supervisory powers to European bodies for large cross-border asset management groups and emerging sectors, such as crypto-assets.
Commission is championing the creation of attractive European financial products or savings and investment accounts to make participation easier and more appealing among retail users

In terms of banking sector integration and competitiveness, the Commission aims to foster a more integrated European banking market. This includes addressing gaps in the current crisis management framework by revising mechanisms for handling mid-sized bank failures. It wants to achieve an ambitious outcome in ongoing negotiations on the Crisis Management and Deposit Insurance (CMDI) framework. It is also firmly committed to safeguarding the competitiveness of internationally active European banks and ensuring a level playing field in European markets vis-à-vis third-country banks.
To succeed, these actions will require both legislative and non-legislative measures at the EU and national levels, with individual Member States responsible for much of the development process. The roadmap is clear and reflects a genuine intention to move forward. However, the success of the initiative will depend on the concrete legislative proposals to come, and it is important to recognize that these changes will take time, given the complexity and duration of the EU’s regulatory processes.
The success of the initiative will depend on the concrete legislative proposals to come, and it is important to recognize that these changes will take time, given the complexity and duration of the EU’s regulatory processes.
The Commission’s initiative certainly comes as welcome news for the European financial system, as it presents a broad yet specific action plan and arrives at a politically opportune moment. However, its success will require close coordination among Member States, especially since key tools—such as tax policy—remain under national jurisdiction. On a positive note, the Commission supports the idea that Member States that reach consensus may move forward more quickly on certain initiatives. That said, the current level of fragmentation within the EU poses a significant hurdle for the full realization of the SIU.