EU seeks to steer up to €10 trillion of citizens’ savings toward capital markets
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The European Commission (EC) has come up with a plan to better utilize the savings of millions of Europeans currently sitting in bank deposits. The EC claims the money can be used in a more productive way, providing the EU with cash to invest in strategic objectives. The bloc’s executive body announced it’s launching the newly adopted Savings and Investments Union (SIU) strategy this week. The initiative aims to enhance Europe’s financial system in order to translate savings into needed investments more effectively. Brussels wants to channel household savings into productive investments The Commission assures the SIU will create better financial opportunities for all, including broader access to capital markets for Europeans as well as better financing options for European companies. “This can foster citizens’ wealth while boosting EU economic growth and competitiveness,” it insisted. The funds that Brussels is interested in amount to €10 trillion ($10.8 trillion), which is what European households now keep in bank deposits. The latter are “safe and easy to access, but they usually earn less money than investments in capital markets,” a press release pointed out. “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 euros sitting in low yield deposit accounts,” EU Commissioner for Financial Services Maria Luis Albuquerque told media on Wednesday. The hope is to entice Europeans to put their money to work in capital markets in pursuit of better returns compared to regular bank deposits. According to data shared in a Euronews report, households in member-states save €1.4 trillion annually, but around €300 billion of these savings end up in non-EU markets now. President of the European Commission Ursula von der Leyen described the proposal as a double win. “Households will…
Filed under: News - @ March 21, 2025 11:25 am