The European Commission has adopted its strategy for the Savings and Investments Union (SIU), aiming to enhance how the EU financial system channels savings into productive investments. This strategy offers EU citizens greater access to capital markets and better financing options for businesses, promoting economic growth and competitiveness.
Ursula von der Leyen, President of the European Commission, stated: Todays proposal for a Savings and Investment Union is a double win. Households will have more and safer opportunities to invest in capital markets and increase their wealth, while businesses will find it easier to access capital for innovation, growth, and job creation in Europe.
The SIU is designed to create a financing ecosystem that supports the EUs strategic objectives. Addressing challenges such as climate change and technological shifts requires significant investments, with estimates of an additional €750-800 billion annually by 2030. The SIU will help small and medium enterprises and innovative companies, which often cannot rely solely on bank financing, by developing integrated capital markets alongside the banking system.
The EU has a talented workforce and a large pool of household savings, approximately €10 trillion in bank deposits. The SIU can improve citizens well-being by offering better investment returns through capital markets.
Increased investments in capital markets support the real economy, allowing companies across Europe to grow and thrive. This creates better jobs and drives investment and growth in sectors deemed strategically important by the EU, such as technological innovation and decarbonization.
Delivering the SIU requires collaboration among EU institutions, Member States, and stakeholders, focusing on four areas:
- Citizens and Savings: Retail savers play a central role and should have the opportunity to invest in higher-yielding capital-market instruments.
- Investment and Financing: Initiatives will be introduced to improve capital availability for all businesses, especially SMEs.
- Integration and Scale: Efforts will reduce inefficiencies and remove regulatory barriers to cross-border operations.
- Efficient Supervision: Measures will ensure equal treatment for financial market participants across the EU.
The SIU also aims to enhance the EU banking sectors integration and competitiveness, with a focus on the Banking Union. Future actions will prioritize measures with the greatest impact on EU competitiveness in 2025.
Implementation will involve legislative and non-legislative measures, requiring cooperation from Member States, the European Parliament, the private sector, and civil society. A mid-term review of the SIUs progress will be published in Q2 2027.
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