- Why is the SIU so important now?
The SIU is essential in the current economic environment, influenced by geopolitical shifts, climate challenges, and technological advancements. The EU needs to unlock its potential to achieve strategic goals related to competitiveness, security, and transitions. The SIU supports a more integrated financial system, enhancing the EUs attractiveness for investment and contributing to economic competitiveness and autonomy. About 70% of citizens savings are in bank deposits, with only 30% in capital markets. The SIU aims to address the savings-investment mismatch, increasing investment efficiency and enabling companies to access significant EU capital.
This initiative offers a strategic framework for aligning the EU financial system, focusing on citizens, investments, integration, and supervision. It builds on previous Capital Markets Union efforts and is more inclusive and citizen-focused. The SIU emphasizes joint EU and national efforts, requiring complementary measures by Member States.
Citizens are central to the SIU, which aims to increase their participation in capital markets by broadening investment options and improving financial literacy. The strategy includes specific actions to support citizens investments, ensuring they are financially literate and have fair access to investment opportunities. The SIU also addresses supplementary pensions, promoting auto-enrolment to enhance participation and returns.
The SIU is vital for EU businesses, increasing access to finance and facilitating growth in key sectors. It addresses capital market fragmentation and proposes removing barriers to cross-border activities. Banks play a crucial role, supporting capital markets and encouraging retail participation.
Member States are pivotal in driving progress, complementing EU-led initiatives. The SIU seeks a diversified financial system, reducing reliance on banks and fostering capital markets to meet the needs of innovative companies.