An idea to speed up the “Savings and Investments Union”

Today the Commission presented its communication on a “Savings and Investments Union”, which aims at leveraging Europe’s vast amount of private savings and inject it into the real economy.

Stéphanie Yon-Courtin (Renaissance, France), our coordinator for economic affairs, says: “Public money alone can no longer finance the digital and green transitions, European defence, or citizens’ pensions anymore. Europe must change course. The Savings and Investments Union is an excellent blueprint to mobilize private investments and stop our capital from bleeding out abroad. One proposal that really could make a difference is the creation of a European savings account.”

But under the Commission’s communication the real legislative proposals will only arrive later this year, beginning of next. Add to that several months to negotiate the texts and the implementation phase. “Nothing tangible will be done before years. We need to act faster. Our investing needs are pressing today and there is a way to speed things up now,” she concludes.

One piece of legislation is currently being negotiated by the Council and the European Parliament: the Retail Investment Strategy. Retail investors are simple households wishing to invest in the real economy. Not many do in Europe - more than 70% of EU citizens never invested in financial products. Either because they find it risky or because they’re not even aware it can be done.

Stéphanie Yon-Courtin, who is in charge of negotiating the file for the Parliament, argues that many elements of the Savings and Investments Union could be sped up via the trilogue negotiations taking place as we speak. Results on the Retail Investment Strategy could be expected by the end of 2025.

Proposals on the trilogue table include: creating “comparison websites” for financial products similar to the ones we have for travel, the inclusion of financial education in school curricula, regulate “finfluencers” who can provide phony advice on social media and erode trust in finance and other measures aiming at instilling a financial culture in European households.