COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Savings and Investments Union A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU
Date: 2025-03-19
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU strategy, capital market, competitiveness, financial supervision, investment, savings, single market, supplementary pension, sustainable development, wealth

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.3.2025  COM(2025) 124 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Savings and Investments Union       A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU   
 
 
1.  Why a Savings and Investments Union? 

The  European  Union  has  the  means  to  secure  its  own  economic  future  and  has  an 
enormous  potential  to  better  serve  its  citizens  and  businesses.  The  EU  benefits  from  a 
talented workforce, many innovative and successful companies, a large pool of savings and a 
predictable  and  sound  legal  environment,  based  on  common  principles  and  the  rule  of  law. 
Europe’s  stock  exchanges count  together  for trillions  of market  capitalisation, it is  home to 
UCITS, the globally most successful brand of investment funds, and has become the global 
leader  for sustainable  finance issuances with  more issuances than the Americas  and Asia & 
Pacific  regions  together.  The  business  case  for  Europe  is  there  –  the  Commission’s 
Competitiveness  Compass1  defines  the  areas  that  are  fundamental  for  growth  and 
competitiveness,  through  flagship  measures  under  the  three  transformational  imperatives: 
closing  the  innovation  gap,  a  joint  roadmap  for  decarbonisation  and  competitiveness  and 
reducing  excessive dependencies and increasing  security.   Financial markets  contribute to  a 
thriving economy that creates better jobs with higher salaries for today’s workers and future 
generations and offers adequate retirement income in light of demographic developments. The 
EU’s resilient and well-regulated financial system has significant untapped potential to channel 
more  savings  to  productive  investment.  EU  citizens  stand  to  benefit  from  well-developed, 
integrated and efficient EU financial markets that can offer them access to more wealth creation 
opportunities.  

The development of a Savings and Investments Union is a crucial priority as it aims to 
improve  the  way  the  EU  financial  system  channels  savings  to  productive  investment, 
creating  more  and  a  wider  range  of  financial  opportunities  for  people  and  businesses, 
notably sustainable businesses. The EU offers attractive investment opportunities, including 
to  investors  from  third  countries,  but  it  is  important  to  render  it  an  even  more  attractive 
investment destination by enhancing its overall growth potential.  Such attractiveness should 
be  secured  by  means  of  strong  aggregate  demand,  support  to  private  investment,  access  to 
cleaner  and  more  affordable  energy,  raw  materials  and  advanced  technologies,  as  well  as  a 
simpler business environment in a single market with fewer barriers. 

The  rapidly  evolving  geopolitical  landscape,  the  challenges  of  climate  change  and 
technological  developments  have  profound  implications  for  the  future  of  the  EU  and 
reviving the economy must be a key focus of the EU’s response. Major policy challenges lie 
ahead,  in  the  fields  of  security  and  defence,  sustainable  prosperity  and  economic 
competitiveness, and also democracy and social fairness, as the EU must urgently prepare to 
play a very different role on the global stage. The EU’s economy will be instrumental in this 
respect, and it is now vital to take a more ambitious approach to policy coordination among 
Member  States,  reflecting  the  imperative  to  act  collectively  to  unlock  significant  untapped 
potential for growth, employment and wealth creation.  

1 European Commission, ‘A Competitiveness Compass for the EU,’ COM(2025) 30 final, 29 January 2025 

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At the same time, persistent fragmentation limits the benefits to be gained from the EU’s 
single  market.  For  financial  services  alone,  the  IMF  estimates  that  internal  barriers  to  the 
single market are equivalent to a tariff of over 100 per cent2,  implying a huge cost to the EU 
economy.  Urgent  action  is  required  to  address  these  barriers  if  the  EU’s  prosperity  and 
economic and geopolitical strength are to be secured. Clearly, the EU financial markets and 
wider economy can be much more than the sum of its national parts and, as argued in the Draghi 
Report3,  a  vibrant  and  resilient  economy  is  a  pre-condition  for  the  EU  to  manage  its  own 
destiny. The EU’s international partners are already adapting to the new geo-economic realities, 
and so the EU must also respond decisively. 

Furthermore, the EU economy has been structurally under-performing for many years, 
partly due to problems with financial intermediation. The EU economy is trapped in a low-
growth  cycle, driven by  persistently  low productivity  compared to  other parts of the world. 
Among other things, the coincidence of relatively low productivity growth and relatively high 
savings  rates  points  to  problems  in  the  intermediation  of  those  savings  to  productive 
investment.  Such  constraints  on  the  financial  intermediation  process  are  hampering  the  EU 
from grasping the opportunities and managing the challenges of a 21st century economy e.g.  
relating to the green and digital transitions4.   

The EU has major investment needs, which the Draghi report estimates at an additional 
EUR 750-800 billion per year by 2030. This estimate is further impacted by increased defence 
investments  that  need  to  be  made  over  the  same  time  frame.  Much  of  these  additional 
investment  needs  relate  to  small  and  medium  sized  enterprises  (SMEs)  and  innovative 
companies, with the latter in particular not being readily financed by banks. For this reason, a 
substantial development of EU capital markets must be an essential element of the Savings and 
Investments  Union  so  the  EU  can  address  the  growing  mismatch  between  savings  and 
investment  needs,  and  thereby  contribute  to  invest  European  savings  into  the  European 
economy.  

The Savings and Investments Union will be crucial to improving how the EU’s financial 
system channels savings to productive investment, providing a wider range of efficient 
investment  and  financing  opportunities  for  citizens  and  businesses  respectively. 
Approximately EUR 10 trillion of EU retail savings are currently held as bank deposits5. While 
bank  deposits  are  safe  and  easily  accessible,  they  generate  a  relatively  low  return  when 
compared to investments in capital market instruments. According to ECB’s analysis6, if EU 
households were to align their deposit-to-financial assets ratio with that of US households, a 
stock of up to EUR 8 trillion could be redirected into market-based investments – or a flow of 
around EUR 350 billion annually.  

2 IMF, Regional Economic Outlook, Europe’s Declining Productivity Growth: Diagnoses and Remedies pg, 19 
3 Mario Draghi, ‘The Future of European Competitiveness,’  2025. https://commission.europa.eu/topics/eu-
competitiveness/draghi-report_en  
4 For example, as the Clean Industrial Deal reiterated, the clean transition of the EU’s economy requires that the 
EU increases its annual investments in energy, industrial innovation and the scale up of the transport system by 
some EUR 480 billion compared to the previous decade. See COM(2025) 85 final and SWD (2023) 68 final – 
Between 2021 and 2030. In this context, mobilising and leveraging private capital, including through sustainable 
finance is key for the green transition and in supporting climate resilience. 
5 Eurostat, ‘https://doi.org/10.2908/NASA_10_F_BS  - Financial balance sheets - annual data,’ 10 March 2025 
6European Central Bank, ‘Follow the money: channelling savings into investment and innovation in Europe,’ 
speech by Christine Lagarde, President of the European Central Bank, 22 November 2024 

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A sense of urgency in developing the Savings and Investments Union is widely shared by 
EU policymakers, but it is time to turn words into action. The Commission has highlighted 
the  Savings  and  Investments  Union  as  a  key  enabler  of  the  efforts  to  boost  EU  economic 
competitiveness in the Competitiveness Compass, and as a key enabler of the Clean Industrial 
Deal. The Commission has also highlighted the Savings and Investments Union in the context 
of mobilising private capital for defence as part of the ReArm Europe Plan.7 As highlighted by 
President von der Leyen8, only an effective, deep and liquid EU financial market can activate 
savings for much needed investments. Progress here is no longer a 'nice-to-have.' It is a 'must-
have.' In today's  world,  maintaining Europe as an economic powerhouse is also a matter of 
collective security, reinforced preparedness and resilience and of enhancing its open strategic 
autonomy9. 

There have been significant contributions in support of taking decisive action to address 
financial intermediation shortcomings, with the European Parliament, the European Council 
and the Eurogroup, and the European Central Bank, all referencing the reports of Enrico Letta10 
and  Mario  Draghi.  However,  if  the  Savings  and  Investments  Union  is  to  be  a  success,  all 
stakeholders  will  face  difficult  choices.  These  choices  will  require  courageous  decisions, 
acknowledging that the EU’s common strength requires collective action, and demonstrating a 
willingness to overcome vested interests and move away from long-established practices.  

The private sector, civil society and various national authorities have also put forward 
many ideas on how to make the Savings and Investments Union a success. Commission 
services have travelled to all the Member States to discuss ways forward and learn about best 
practices.  Common messages included the need to have a ‘growth-focused’ approach, remove 
barriers to cross-border activity, simplification and proportionality in regulation, a clearer focus 
on financial literacy, a wider choice of financing options for businesses and creating a more 
direct  link  between  EU  action  and  local  economies  and  jobs  creation.  However,  while  the 
Savings and Investments Union will bring major benefits to the EU economy, these benefits 
will also require significant changes in the functioning of the financial system at both EU and 
national levels. It will be essential that actors in the private sector, social partners, and civil 
society, as well as national authorities, recognise the need for such change and embrace the 
opportunities provided by a more developed and integrated EU financial system. 

As confirmed by the feedback from all stakeholders 11, which the Commission has taken 
into account, delivering on the Savings and Investments Union will require a combination 
of  EU  level  and  national  level  measures.  Building  upon  this  feedback  and  guided  by  the 
strategic direction set out in the Competitiveness Compass, this Communication outlines how 
the EU can advance the Savings and Investments Union. Actions on Savings and Investments 

7 European Commission, ‘Press statement by President von der Leyen on the defence package’ 4 March 2025 
8 European Commission, ‘ Press remarks by President von der Leyen on the first 100 days of the 2024-2029 
Commission, 9 March 2025 
9 The financial sector can only thrive in environment that is secure and resilient against cyber threats, and that 
ensures a high level of trust of savers and investors. 
10 Enrico Letta,  ‘ Much more than a market – Speed, Security, Solidarity - Empowering the Single Market to 
deliver a sustainable future and prosperity for all EU Citizens,’ 2025.  Enrico Letta's Report on the Future of the 
Single Market - European Commission  
11 Including though a call for evidence. See also https://ec.europa.eu/info/law/better-regulation/have-your-
say/initiatives/14488-Savings-and-Investments-Union_en  

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Union will be rolled-out in the first half of the mandate. Packages of measures will be taken in 
a limited range of areas, with a clear link to boosting competitiveness in the EU economy, with 
the most impactful actions being given priority in 2025. The measures proposed will be further 
developed in the period ahead and in continued dialogue with stakeholders. 

2.  What kind of Savings and Investments Union? 

The Savings and Investments Union should encompass all of the EU financial system and 
be developed at both EU and national levels. The Savings and Investments Union should 
draw on progress already made under the two Capital Markets Union Action Plans12 and the 
parallel efforts to develop the Banking Union. It should be developed further using the most 
effective  measures,  both  legislative  and  non-legislative,  factoring  in  the  dual  objectives  of 
financial  stability  and  sustainable  competitiveness  in  the  EU,  while  taking  into  account  the 
EU’s strategic goals.  

Building the Savings and Investments Union is a shared responsibility of Member States 
and EU institutions. It should be noted that the financial system and its supervision does not 
work in isolation, and achieving an efficient single market in financial services would entail 
Member  States  efforts  to  address  divergences  in  underlying  laws,  including  securities, 
company and insolvency laws, as well as in the effectiveness  of administrative and judicial 
procedures, including those applicable for the enforcement of decisions. Some of those barriers 
may need to be tackled through the upcoming Single Market Strategy.   

EU-level measures are clearly warranted in key areas where all Member States can and 
should  move  in  lockstep  to  address  EU-wide  shortcomings.  Other  measures  will  also 
require a co-ordinated approach but will rely more on Member States acting individually. 
The Commission can assist Member States in identifying, designing and implementing national 
measures and offer support for coordinating their actions, where this brings added value. Such 
national measures have been identified by the Eurogroup as a necessary complement to EU 
actions  and  have  been  repeatedly  highlighted  by  industry  and  civil  society  stakeholders13. 
Furthermore,  the  Commission  may  accompany  concerted  initiatives  by  groups  of  Member 
States where such initiatives go further and faster to achieve Savings and Investments Union 
objectives. Such concerted initiatives must be open to participation by all interested Member 
States, respect the division of competences between the EU and the national levels, the right of 
initiative  of  the  Commission,  and  be  in  alignment  with  EU  priorities  and  frameworks. The 
Savings and Investments Union should also be better integrated into the European Semester 
process, where  progress  in  implementing structural  reforms  by Member States, individually 
and collectively, will be regularly assessed. Actions that are instrumental to deliver the Savings 
and Investments Union  will be further reflected in Country Specific Recommendations, thus 
incentivising  Member  States  to  deliver  and  implement  reforms.  Finally,  the  Savings  and 
Investments  Union  will  pursue  more  efficiency  and  will  be  guided  by  considerations  of 

12 European Commission, 'Action Plan on Building a Capital Markets Union,' COM(2015) 468 final, 30 
September 2015 and 'A Capital Markets Union for People and Businesses – New Action Plan,' COM(2020) 590 
final, 24 September 2020 
13 Statement of the Eurogroup in inclusive format on the future of Capital Markets Union,  March 2024, 
https://www.consilium.europa.eu/en/press/press-releases/2024/03/11/statement-of-the-eurogroup-in-inclusive-
format-on-the-future-of-capital-markets-union/pdf/  

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simplification, burden reduction and digitalisation, as laid out in “A Simpler and Faster Europe: 
Communication on Implementation and Simplification14.”   

Implementing the Savings and Investments Union requires a range of policy measures, 
affecting various dimensions of the EU’s financial system. These policy measures can be 
grouped under four distinct but inter-related headings: (a) Citizens and Savings, (b) Investments 
and Financing, (c) Integration and Scale, and (d) Efficient Supervision in the Single Market, 
each of which is discussed in the following sections. 

(A) Citizens and Savings 

Retail savers already play a central role in financing the EU economy via bank deposits, 
but they must be encouraged and incentivised to hold more of their savings in capital-
market instruments. EU citizens can greatly benefit from investing in capital markets, where 
they can get higher return from their savings as well as contribute directly to jobs creation, and 
economic  growth.  Proactive  and  substantial  retail  participation  is  also  essential  for  the  EU 
capital market to acquire sufficient scale and depth to provide the necessary range of financing 
opportunities to all EU businesses, including those more innovative, with higher risk and higher 
returns.  Greater  trust  in  financial  products  is  an  important  precondition  for  citizens  to 
participate  in  capital  markets,  implying  the  need  for  easy,  simple  and  low-cost  access  to 
investment  opportunities.  In  this  context,  it  is  necessary  to  improve  the  levels  of  financial 
literacy as also underlined in the Communication on the Union of Skills adopted on 5 March. 
among  potential  retail  investors  and  offer  investment  opportunities  that  meet  their  needs 
through different phases of their lives, notably in preparation for retirement.  At national level, 
policy measures will be required to attract retail investors into capital markets via appropriate 
savings arrangements and incentives, including tax incentives. At EU level, measures will be 
required to support competition and ultimately offer retail investors a wider choice of products 
that fit their preferences in terms of retirement savings, investments and insurance.   

Encouraging Retail Participation in Capital Markets  

Experience  in  some  Member  States  has  already  shown  the  potential  for  savings  and 
investments accounts to boost retail participation in capital markets, especially when such 
accounts  are  matched  with  appropriate  incentives.  Improving  access  to  savings  and 
investments  accounts  can  greatly  benefit  retail  investors,  by  offering  them  more  attractive 
returns, creating scale effects and deepening market liquidity. Such accounts already exist in 
some  Member  States,  but  uptake  varies  widely  depending  on  their  features.  In  the  more 
successful examples, those savings and investments accounts are easy to use and designed with 
digital interfaces that give access to a wide range of appropriate products, offer preferential tax 
rates or simplified tax processes, and allow a change of provider for no or low cost. In some 
cases,  the  accounts  and  tax  incentives  are  designed  to  support  investment  in  European 
companies and in strategic priorities such as defence and space, research and innovation and 
the green transition. To further incentivise retail participation in capital markets and to mobilise 
investments in the European economy, access to savings and investments accounts should be 
extended across the EU.  

14 European Commission, ‘A Simpler and Faster Europe: Communication on Implementation and 
Simplification,’ COM(2025)47 , 12 February 2025 

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It is imperative that retail investors are treated fairly and offered adequate choice when 
accessing investment products. In this respect, the Commission proposed a Retail Investment 
Strategy  in  2023  which  primarily  focused  on  ensuring  that  retail  investors  are  adequately 
protected  and  obtain  value  for  money  when  investing  in  capital-market  instruments.  The 
proposal  is  now  being  negotiated  by  the  European  Parliament  and  the  Council.  The 
Commission  will  remain  vigilant  that  the  final  outcome  is  ambitious  and  protects  investors 
while minimising any associated regulatory burden. In particular, the outcome should avoid 
further fragmentation of EU capital markets to the detriment of retail investors , put in place 
disclosures  rules  that  offer  information  in  a  simple  and  easily  understandable  manner,  and 
ultimately contribute tangibly to encouraging greater retail investor participation in the EU’s 
capital markets. 

Higher levels of financial literacy will be essential in developing a retail investment culture 
within the EU.  Unfortunately, financial literacy  in  the EU  is  poor, with  the Eurobarometer 
survey of July 2023 showing that only 18% of EU citizens possess a high level of financial 
literacy15.  Levels  also  vary  significantly  between  Member  States  and  among  different 
demographic  groups  within  Member  States,  with  women,  young  people,  and  older  adults 
having lower average financial literacy levels. Some Member States have already taken action 
in this regard, but a more coordinated effort, at both EU and national levels, will be required to 
raise average financial literacy  across the Union, building on lessons learned and initiatives 
already being implemented.16  

Retail investors should be given opportunities to support strategic projects whose success 
is particularly relevant to EU priorities and to the future of our societies, by co-investing 
alongside public entities. The potential for retail investors to have increased access to such 
investments  should be further explored.    

Proposed Policy Measures: 

•  The Commission will adopt measures (legislative or non-legislative) by Q3 2025 to 
create a European blueprint for savings and investments accounts or products based 
on existing best practice. These measures will be accompanied by a recommendation 
addressed  to  the  Member  States  on  the  tax  treatment  of  savings  and  investments 
accounts.  The  Commission  will  closely  monitor  the  uptake  of  these  accounts  and 
regularly report on progress. 

•  The Commission will facilitate agreement between Parliament and Council on the 
Retail Investment Strategy. However, the Commission will not hesitate to withdraw 
the proposal if the negotiations fail to meet the intended objectives of the Strategy.  

•  The  Commission  will  adopt  by  Q3  2025  a  financial  literacy  strategy  to  empower 
citizens,  raise  awareness  and  increase  their  participation  in  capital  markets,  thus 
creating a more “investment savvy” culture. The strategy will also seek to increase 

15 European Commission, ‘Flash Eurobarometer 525 - Monitoring the level of financial literacy in the EU,’ July 
2023. 
16   Such as the joint EU/OECD Financial Competence Frameworks for Children and Youth and for Adults. 

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exchanges of best practices among Member States and to provide further guidance 
on implementing the existing financial competence frameworks.  

•  The  Commission,  together  with  the  European  Investment  Bank  (EIB)  Group,  the 
European  Stability  Mechanism  (ESM)  and  national  promotional  banks  among 
others,  will  explore  how  to  increase  opportunities  for  retail  investors  to  access 
suitable  financial  products  that  allow  them  to  contribute  to  the  funding  of  EU 
priorities.  

Developing the Supplementary Pension Sector 

A  more  developed  EU  supplementary  pensions  sector  is  critical  to  provide  financial 
security for citizens notably in the context of the demographic trends, and will help to 
develop capital markets and deploy investments to finance EU growth and innovation. 
Policy measures will be required at both EU and national levels to support further uptake of  
supplementary pension schemes, not preempting the further development and  as part of strong 
multi-pillar  systems,  in  dialogue  with  social  partners,  while  creating  the  conditions  for  this 
sector to deliver better performance for long-term savers.  

At  national  level,  Member  States  would  need  to  introduce  the  necessary  arrangements  to 
develop their own supplementary pension sectors. Some Member States already have relatively 
developed  supplementary  pensions,  and  it  is  not  by  coincidence  that  they  also  have  more 
developed capital markets. This indicates that there is a high potential for Member States to 
learn from each other in this field.  

Auto-enrolment, as a catalyst to unlock greater scale and depth of occupational pensions 
markets, can be an important element in developing supplementary pensions that deliver 
for citizens. As an easy and efficient way for people to participate, auto-enrolment can increase 
the  participation  rates  of  workers  and  enhance  returns  to  pension-holders  by  delivering  the 
benefits of greater scale and capacity to diversify. Building on existing Member States’ positive 
experience with  auto-enrolment17,   the practice  should be promoted  more widely across the 
Union. Meanwhile, further developing pension tracking systems and pension dashboards 
will increase awareness of citizens about their expected retirement income and so support better 
financial planning.  

At EU level, the current legal frameworks for providing supplementary pensions via so-called 
institutions  for  occupational  retirement  provision  (IORPs)  and  through  the  pan-European 
personal pension product (PEPP) have not been very effective, and efforts to boost occupational 
and personal pensions on a cross-border basis have so far been largely unsuccessful. Several 
challenges  have  stood  in  the  way:  pension  providers  are  often  too  small,  markets  are  too 
fragmented, regulations can be restrictive, fees and costs are high due to insufficient scale, and 
many workers and employers are not familiar with these providers or pension products. As a 
result, IORPs struggle to make full use of the investment opportunities across the EU and to 
generate  attractive  returns  for  their  members.  In  addition,  the  market  for  personal  pension 
products remains underdeveloped.  

17 See ‘Best practices and performance of auto-enrolment mechanisms for pension savings, Final report at 
https://op.europa.eu/en/publication-detail/-/publication/6f40c27b-5193-11ec-91ac-01aa75ed71a1/language-en.  

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Proposed Policy Measures: 

•  The  Commission  will  issue  by  Q4  2025,  recommendations  on  the  use  of  and  best 
practices for auto-enrolment, pensions tracking systems and pension dashboards that 
will set out best practices and lessons learned from across the EU and recommend 
the development of such tools.  

•  The Commission will by Q4 2025, review the existing EU frameworks for Institutions 
for  Occupational  Retirement  Provision  (IORPs)  and  the  Pan-European  Personal 
Pension Product (PEPP) with the aim of increasing participation in supplementary 
pensions    to  ensure  adequate  income  in  retirement  and  improving  the  capacity  of 
pension  funds  to  direct  households’  savings  into  productive  and  innovative 
investment.  

 (B) Investments and Financing  

As highlighted by the Competitiveness Compass, the EU needs a larger pool of capital to 
support investments in the European economy and lower financing costs for European 
businesses. Decisive action is needed to significantly increase the funding opportunities for all 
EU  businesses,  from  the  start-up  phase  right  through  to  more  mature  companies,  including 
those that need to embark in the green and digital transitions, or those active in the defence and 
space sectors and regardless of where they are based in the EU. Policy measures at both EU 
and  national  levels  will  be  needed  to  promote  investment  in  equity  in  general  and  venture 
capital/growth capital in particular. Such measures must include efforts to facilitate investment 
exits, address tax barriers and further boost securitisation markets. The mobilisation of private 
funds can also be supported by an efficient leveraging of public initiatives that support strategic 
investments. This must be complemented by efforts by industry and other stakeholders to build 
dynamic  local  ecosystems,  including  within  regions,  and  engaging  with  business  angels, 
networks, incubators, and partnerships with industry and academia.  

Promoting Investment in Equity and Certain Alternative Asset Classes 

Institutional  investors such as  insurers and  pension funds  play  an  essential  role in the 
EU’s  financial  system  but  tend  to  be  less  active  in  markets  for  equity  and  certain 
alternative assets, namely venture capital, private equity and infrastructure. Provided that 
they are carefully managed, investments in equity and alternative asset classes can be a valuable 
component  of  the  portfolio  of  institutional  investors,  offering  diversification,  higher  returns 
and inflation protection. At the same time they provide crucial funding for the economy. It is 
important to ensure that there are no undue regulatory barriers for such institutional investors 
to  access  these  asset  classes,  by  clarifying  the  prudential  treatment  of  exposures  to  patient 
capital,  including  venture  and  growth  capital.  Increased  equity  financing  through  stronger 
involvement of institutional investors would be to the benefit of all EU businesses, in particular 
SMEs  and  small  mid-caps,  which  form  the  backbone  of  the  EU’s  economy  and  still  face 
important barriers in accessing finance. 

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The  EU’s  economic  competitiveness  and  security  critically  depend  on  the  ability  of 
innovative startups and scaleups to access capital,  not least for those  active in areas key 
to European competitiveness such as Artificial Intelligence, quantum and other deeptech 
fields, biotech and cleantech or in the defence sector. Young companies with uncertain future 
revenues and a lack of collateral rely heavily on equity financing and usually turn to venture 
and growth capital funds. This funding source is however too scarce and fragmented in the EU, 
especially compared to the corresponding markets in other jurisdictions. While a comparable 
number of startups are created in the EU, the availability of financing for these companies is 7 
times  lower18  when  compared  to  the  United  States.  Too  many  EU  startups  seek  late-stage 
growth capital from venture capital funds outside of the EU or get acquired by foreign entities 
before they scale19. The EU is currently home only to 263 unicorns (13% of the global total). 
Despite some recent progress (5,6% growth in the number of unicorns during 2023), Europe 
lacks  an  environment  to  fully  scale  innovative  and  high-growth  companies.  This  calls  for 
decisive  action  to  ensure  innovative  companies  can  be  financed  and  can  grow  in  the  EU, 
complementing the objectives of the upcoming Startup and Scaleup Strategy. This will also 
substantially  benefit  the  financing  of  the  defence  and  space  sectors  in  line  with  the  actions 
highlighted in the White Paper on Defence.  

For venture and growth capital funds to thrive, it is important that the rules applying to 
these funds at both EU and national level are flexible and proportionate. The EuVECA 
label was created with these objectives in mind, but take up of the label by venture and growth 
capital funds has been uneven across Member States, due to regulatory limitations that affect 
its attractiveness and its positive impact on local venture capital markets.  

Member  States  can  also  play  a  crucial  role  in  fostering  a  more  dynamic  investment 
environment for venture capital and growth capital financing. National reforms can help 
unlock private investment, in particular by reducing administrative burdens for businesses. To 
increase the attractiveness of venture capital investment in diversified portfolios in which not 
all underlying individual projects are bound to succeed, it will also be essential to streamline 
restructuring,  insolvency  and  bankruptcy  procedures  to  the  benefit  of  entrepreneurs  and 
investors. It is equally important to ensure that tax frameworks—especially the treatment of 
losses—do not discourage risk-taking.  

Legislative  action  alone  will  not  be  sufficient  to  achieve  the  desired  results  in  promoting 
investment  in  equities  and  alternative  asset  classes.  A  broader  approach  will  be  required, 
making  use  of  all  available  instruments  in  order  to  foster  and  develop  the  financing 
ecosystem, to the benefit of investment in the EU’s strategic objectives. The Commission will 
use  all  available  measures  to  promote  an  efficient  financing  ecosystem,  such  as  by  taking 
enforcement and other actions to remove barriers, including those at national level.    

Aligning Public Funding instruments with Savings and Investments Union Objectives 

18 IMF calculations, based on Pitchbook data (figure 17): total VC funds raised over 2013-2023 in the EU 
amounted to 130 bn USD, in comparison to 924 bn USD in the US. 
https://www.imf.org/en/Publications/WP/Issues/2024/07/10/Stepping-Up-Venture-Capital-to-Finance-
Innovation-in-Europe-551411  
19 The scale-up gap: Financial market constraints holding back innovative firms in the European Union | EIB. 

9 

 
 
 
 
 
 
 
 
 
 
 
The Commission will look for ways to better align EU public funding instruments with 
the Savings and Investments Union objectives. In addition, the next long-term EU budget is 
an  opportunity  for  the  EU  to  make  better  use  of  its  budget  to  de-risk  and  leverage  further 
national, private and institutional financing20, in particular thanks to a new Competitiveness 
Fund, to the benefit of all Member States. The new Multi Annual Financial Framework and the 
Savings and Investments Union can be mutually supportive. The broader financial architecture 
of EU spending programmes includes loans, guarantees and financial instruments backed by 
the EU budget,  and mobilises co-financing  from  Member States and beneficiaries. Through 
InvestEU and the European Innovation Council, the EU budget de-risks innovative projects 
and  crowds  in  private  sector  investments.  However,  unlocking  private  investments  is  still 
proving challenging. The EU budget can further complement and mobilise private investments 
to finance fast-growing companies and address barriers that restrict the amount of European 
capital available to finance innovation  

Successful  EU  and  national  programmes  supporting  the  development  of  venture  and 
growth capital should also be further developed21. Some of these programmes use public 
funds to leverage venture and growth capital by overcoming investors' inertia to invest into this 
asset  class,  helping  to  develop  more  expertise  in  the  startup  and  scaleup  ecosystem  among 
investors and build trust and long-term relationships within the financing ecosystem, including 
at  regional  level.  The  Commission  will  therefore  work  with  the  EIB  Group,  national 
promotional  banks  and  private  investors  to  unlock  more  private  investments,  notably  from 
institutional investors, into the venture and growth capital segment.  

Investment Exits 

The  lack  of  suitable  exit  options  for  investors  is  often  cited  as  a  major  reason  for  the 
underdevelopment  of  venture  and  growth  capital  funds  in  the  EU.  Listing  on  public 
markets is a potential exit option. To improve the attractiveness of public capital markets, the 
EU  recently  adopted  measures  to  reduce  the  regulatory  burden  and  costs  for  companies, 
especially for SMEs and small mid-caps, associated with the listing process (Listing Act). It 
will  be  important  that  these  measures  are  fully  implemented  across  the  Union.  In  addition, 
further measures to support the IPO journey of companies could be explored so as to increase 
the attractiveness of an exit via public capital markets. However, listing  on a public market 
may  not  be  a  suitable  option  in  all  cases.  Therefore,  more  may  need  to  be  done  to  boost 
secondary  markets  for  private  capital,  including  by  supporting  exits  by  investors  in  private 
companies. Additional innovative approaches are needed to improve capital accessibility for 
smaller companies while offering private investors greater opportunities to engage with high-
growth companies not yet ready for a public listing.  

Taxation 

The debt bias which characterises taxation systems in many Member States gives undue 
fiscal incentives to debt financing at the expense of equity financing. The Commission has 
sought to address this issue through its proposal for the Debt-Equity Bias Reduction Allowance 

20  COM(2025)46 – Communication on the road to the next multiannual financial framework.  
21 For example the European Innovation Council, the French Tibi initiative, the Greek Equifund supported by 
ERDF and the German WIN initiative. 

10 

 
 
 
 
 
 
 
 
 
 
 
(DEBRA). This initiative, however, has not been taken forward in the Council and likewise 
Member States have not undertaken comparable initiatives at national level and this maintains 
the debt bias in a context where the Savings and Investments Union seeks to incentivise more 
equity investment.  

Differences  in  national  taxation  procedures  can  create  administrative  burden  and 
barriers to cross-border investment. The Faster and Safer Tax Relief of Excess Withholding 
Taxes (FASTER) Directive makes withholding tax procedures in the EU more efficient and 
secure  for  investors,  financial  intermediaries  and  national  tax  administrations.  Despite  this 
progress,  other  barriers  remain  and  prevent  the  achievement  of  necessary  scale  in  capital 
markets and restrict opportunities for investment. For instance, examining how the EU can take 
a more harmonised approach to ownership of investments and fund structures could increase 
the level of tax certainty and can allow funds and investors to better manage and estimate their 
returns as they invest across borders. 

Securitisation  

Securitisation can boost investment by allowing banks to transfer risks to those that are 
able to bear them and thereby free up their capital for additional lending to households 
and businesses, including SMEs. The EU’s Securitisation Framework, covering both simple, 
transparent  and  standardised  (STS)  and  non-STS  securitisations,    has  strengthened  market 
transparency,  safety,  and  standardisation.  At  the  same  time,  further  simplification  of  the 
Framework  could  help  in  fully  exploiting  the  benefits  that  securitisation  can  offer.  While 
regulatory measures will be instrumental in harnessing securitisation’s potential as a liquidity, 
capital management and risk transfer tool, industry-led action is also crucial. Private sector or 
Member States’ initiatives, including  the creation of platforms,  can  enhance standardisation 
and strengthen the securitisation ecosystem. The EIB Group could also further contribute to 
the development of the EU securitisation market. 

Proposed Policy Measures: 

•  The Commission will by Q4 2025 take measures to stimulate equity investments by 
institutional investors. To facilitate investment in equity by insurers, the Commission 
will specify in the Solvency II delegated act the eligibility criteria for the favourable 
prudential treatment of long-term investments in equity. For banks, the Commission 
will give guidance on the use of the favourable prudential treatment for investments 
under  legislative  programmes.  The  Commission  will  consider  replicating  such 
treatment also for insurers under the Solvency II delegated act. For pension funds, 
the Commission will clarify how such investments can be in line with the prudent 
person  principle  enshrined  in  current  legislation.  In  parallel  the  Commission  will 
address any further undue barriers to equity investment by institutional investors. 

•  The Commission will by Q3 2026, review and upgrade the EuVECA Regulation to 
make this label more attractive, including by widening the scope of investable assets 
and strategies. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
•  The Commission will work with the EIB Group and private investors to deploy the 
scaleup  TechEU22  investment  programme.  The  Commission  will  explore  ways  to 
support  the European Tech-Champions Initiative 2.0 (ETCI)23 that will be launched 
by the European Investment Fund (EIF) by 2026, and other potential inititatives that 
aim  at crowding in private investment into venture and growth capital, supporting 
higher-risk innovation and contributing to pan-European capital market integration, 
will have a particular role to play. The Commission also encourages the EIB Group 
to  explore  appropriate  mechanisms  to  facilitate  exit  opportunities  for  European 
companies. 

•  The  Commission  will  take  action  to  remove  differences  in  national  taxation 
procedures creating administrative burden and barriers to cross-border investment 
and also support Member States’ actions for this purpose, e.g. through exchanges of 
best  practices,  enforcement  of  free  movement  of  capital  and  other  single  market 
freedoms, and by issuing recommendations. 

•  In implementing the Listing Act, the Commission will ensure that EU listing rules as 
established  in  delegated  and  implementing  acts  are  simple  and  that  burdens  are 
minimised, to increase liquidity and the supply of capital to listed companies, thereby 
making EU public markets more attractive.  

•  The Commission will by Q3 2026, put forward measures to support exits by investors 
in  private  companies,  possibly  through  multilateral  intermittent  trading  of  private 
company shares.  

•  On  securitisation,  the  Commission  will  make  proposals  in  Q2  2025  focusing  on 
simplifying due diligence and transparency, and adjusting prudential requirements 
for banks and insurers.  

(C) Integration and Scale 

Sources  of  fragmentation  in  EU  capital  markets,  whether  regulatory,  supervisory  or 
political, should be removed to allow for the possibility of market-driven consolidation. 
Intermediation in the EU’s capital markets remains very fragmented along national borders, 
limiting efficiency and impeding market operators from harnessing the scale effect of a more 
integrated  market.  While  integration  of  EU  capital  markets  should  be  ultimately  a  market-
driven process, it is clear that any such process can be precluded by the existence of national 

22 The TechEU investment programme supports disruptive innovation, strengthens Europe’s industrial capacity 
and scale up companies, by contributing to narrowing the funding gap for the whole value chain of innovation 
and tech, it does so by offering debt, equity and quasi-equity financial products working directly with companies, 
but also through a network of financial intermediaries. Focus of TechEU includes support of the “exit” of initial 
and venture investors and the late growth phase of innovative companies. 
23 Building on the success of the European Tech-Champions Initiative (ETCI), part of the TechEU investment 
programme,  the  EIB  Group will  launch  ETCI  2.0,  a  deeper  and  even  more  ambitious  fund  of  funds  structure 
pooling capital from both private and public investors. By leveraging on the participation of long-term institutional 
investors  including  pension  funds  and  insurance  companies,  this  initiative  will  help  close  the  funding  gap  of 
European scale-ups. 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
barriers.  In  this  context,  the  Commission  has  launched  external  studies  to  identify  barriers 
affecting  the  consolidation  of  trading  and  post-trading  infrastructures  and  the  scaling  up  of 
investment funds in the EU, including economic, legal (at national and EU level), supervisory, 
technological,  behavioural  and  operational  ones. The  Commission  will  also  open  a  specific 
channel for all market participants to signal barriers that they experience. More generally, the 
Commission will use its powers to propose legislation and to launch infringement procedures 
to remove such barriers, while better supporting Member States in implementing EU legislation 
in  line  with  the  recent  Communication  on  Implementation  and  Simplification.  In  addition, 
simplification  efforts  should  be  undertaken  by  the  European  Supervisory Authorities.  The 
Commission will also work closely with the European Supervisory Authorities and Member 
States to identify and remove barriers. In particular, the detection and removal of gold-plating 
of  commonly  agreed  EU  legislation  and  reducing  national  options  and  discretions  that 
contribute to fragmentation will be prioritised.  

Simplification of the EU framework will underpin efforts in this area, including by reducing 
transposition burdens and narrowing gold-plating opportunities, notably through recourse to 
Regulations instead of Directives.  Measures such as the Commission proposal for a 28th legal 
regime and the European Innovation Act  – as indicated in the Competitiveness Compass, - can 
play an important role in removing fragmentation in EU financial markets by providing a single 
set  of  rules,  including  relevant  aspects  of  corporate  law,  insolvency,  labour  and  tax  law. 
Moreover, a possible review of the Shareholders Rights Directive could contribute to making 
it easier and cheaper for investors, intermediaries and issuers to operate across Member States.  

Consolidating Trading and post-Trading Infrastructures  

Despite progress in recent years, remaining barriers prevent the EU trading and post-
trading infrastructures from exploiting the benefits of a truly frictionless single market. 
This may also limit the benefits that can be achieved within groups that include multiple trading 
and post-trading infrastructures. In this context, it is important to enhance the interoperability, 
interconnection and efficiency of EU trading and post-trading infrastructures. This will include 
how  to  best  leverage  and  deploy  the  latest  generation  of  technologies  and  innovations  in 
financial market infrastructure, such as distributed ledger technology, tokenisation of financial 
assets and Artificial Intelligence (AI). It will also include examination of whether the current 
regulatory setting is fit for the market structure, as it has evolved over the last years notably in 
the  trading  area.  It  is  also  important  that  the  current  regulatory  and  supervisory  framework 
adequately  caters  for  synergies  within  groups  of  multiple  trading  and  post-trading 
infrastructures. 

Further Developing the Asset Management Sector 

The EU benefits from a prudentially sound and strong investment fund sector but, despite 
impressive progress in the last decade, much remains to be done. At the core of the issue is 
fragmentation and unnecessary regulatory burdens. Currently, asset managers operating as a 
group structure across multiple Member States are subject to unnecessary barriers and costs 
stemming from the obligation to allocate similar resources to each of their entities. They are 
also subject to multiple  rules, which results in an unnecessary duplication of burdens and a 
drag on their competitiveness and agility. While the current regulatory framework enables EU-

13 

 
 
 
 
 
 
 
 
 
 
 
authorised funds to benefit from the passport and be freely distributed across the EU, subject 
to a simple notification procedure, such funds do not always enjoy the full benefits in practice. 
National barriers, divergent practices and gold-plating,  increase costs for the EU funds market 
and hinder their time to market compared to other jurisdictions. In turn, EU citizens see reduced 
investment opportunities and increased fees.  

Proposed Policy Measures: 

•  The  Commission  will  set  up  in  Q2  2025  a  dedicated  channel  for  all  market 
participants to report on encountered barriers within the single market and will step 
up enforcement action to accelerate their removal. 

•  To address barriers to more integrated trading and post-trading infrastructures, the 
Commission will come forward in Q4 2025 with an ambitious package of legislative 
proposals including rules on central securities depositories, financial collateral and 
settlement  and  on  the  trading  market  structure,  with  the  aim  of  further  removing 
barriers to cross-border activity, modernising the legislative framework to recognise 
new technologies and financial developments, as well as ensuring better quality of 
execution and price formation on EU trading venues, whilst reducing administrative 
burden and considering replacing Directives with Regulations.  

•  The Commission will in Q4 2025 propose legislation to remove remaining barriers – 
national or at EU level –  to the distribution of EU-authorised funds across the EU. 
The  Commission  will  also  come  forward  with  measures  to  reduce  operational 
barriers affecting cross border groups with a view to simplifying operations of asset 
managers, both large and more specialised, and ensuring a more efficient access and 
servicing of clients.  

•  The  Commission  will  assess  the  need  for,  and  consider  a  potential  review  of  the 
Shareholders  Rights  Directive  by  Q4  2026  to  make  it  easier  for  investors, 
intermediaries and issuers to operate across Member States.   

(D) Efficient Supervision in the Single Market 

Harmonised supervision is an objective of the Savings and Investments Union. It entails 
that all financial market operators receive the same supervisory treatment irrespective of 
their  location  across  the  Union.  In  this  way,  harmonised  supervision  can  contribute  to 
integrating  markets  by  eliminating  barriers  to  cross-border  activity,  creating  a  level  playing 
field for market participants and fostering investors’ confidence.  

Harmonised supervision through a single supervisor already applies to a large part of the EU 
banking  sector,  but  in  other  sectors,  and  notably  in  capital  markets,  participants  are  mainly 
supervised  by  national  competent  authorities.  Harmonised  supervision  does  not  necessarily 
require a single supervisor in all cases and can in principle be achieved through convergence 
of  national  supervisory  practices.  Yet  notwithstanding  substantial  progress  through  the 
coordination  under  the  European  System  of  Financial  Supervision,  important  differences 
persist. Despite having a single rulebook, national authorities often apply the rules differently. 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Such divergence can sometimes reflect protectionist behaviour and discourages cross-border 
activities by increasing compliance costs for companies and thereby limiting choice for people 
and  businesses.  Too  often  national  supervisory  practices  result  in  additional  requirements 
leading  to  fragmentation  and  unnecessary  administrative  burdens  and  represent  barriers  to 
business activities in the single market. On the other hand, such divergences can also create the 
conditions  for  supervisory  arbitrage,  which  can  undermine  confidence  among  market 
participants and erode trust between national supervisors.  

Reducing divergence in supervisory practices in EU capital markets will require a new 
balance  between  supervisory  responsibility  at  EU  and  national  levels.  European 
Supervisory  Authorities  (ESAs)  need  to  make  better  use  of  their  existing  supervisory 
convergence tools to achieve more integrated and harmonised supervision. In particular, they 
will need to step up their work on identifying and tackling divergent national practices where 
these hinder the development of truly integrated markets and their consistent supervision. The 
ESAs  have  a  particular  responsibility  to  ensure  that  their  convergence  tools  contribute  to 
dismantling barriers and take account of the Commission’s simplification agenda and burden 
reduction targets in their work.For areas where national competent authorities face capacity 
constraints, it should be possible for national competent authorities to have access to a pool of 
expertise  and  therefore  have  recourse  more  systematically  and  widely  to  the  support  of  the 
ESAs,  for  instance  by  obtaining  technical  advice  or  by  delegating  specific  tasks  or 
responsibilities, or by benefitting regularly from ESAs’ role as a data and technology hub and 
a provider of SupTech tools24.  

There  are  limits  to  the  use  of  convergence  tools  and  there  are  circumstances  where 
transfer of direct supervision at EU level is already appropriate. In cases where market 
participants have a significant cross-border presence, a supervisory perspective that extends 
beyond  the  national  level  can  bring  useful  synergies.  Such  considerations  are  particularly 
relevant  for  market  operators  with  significant  cross-border  activities,  such  as  certain  large 
trading and post-trading infrastructures, as well as large cross-border asset management groups. 
In cases of    new or emerging  sectors  (e.g. crypto asset services providers), it may be more 
efficient  to  develop  supervisory  capacity  at  EU  level.  For  all  new  tasks,  the  ESAs  should 
receive appropriate funding and there should be clarity about their liability and accountability. 
Following the transfer of responsibilities, it should be considered to pool supervisory resources 
from national competent authorities to the relevant ESAs, to avoid duplicating capacity and 
corresponding costs.  

Proposed Policy Measures:  

•  The  Commission  calls  on  the  European  Supervisory  Authorities  and  National 
Competent Authorities to make full use of currently available tools and implement 
the simplification agenda as outlined in the Simplification Communication. 

•  The  Commission  will  propose  in  Q4  2025  measures  to  strengthen  supervisory 

convergence tools, and make them more effective.  

24 https://www.bankingsupervision.europa.eu/press/supervisory-
newsletters/newsletter/2023/html/ssm.nl231115_2.en.html 

15 

 
 
 
 
 
 
 
 
 
 
 
•  The  Commission  will  also  make  proposals  in  Q4  2025  to  achieve  more  unified 
supervision  of  capital  markets  as  indicated  in  the  Competitiveness  Compass, 
including by transferring certain tasks to the EU level.  

3. 

Competitiveness and Integration of the Banking Sector 

An integrated EU banking sector, based on a single rulebook, and a Banking Union, are 
crucial for the success of the Savings and Investments Union.  

Banks have an important role to play in the economy as financial intermediaries between savers 
and companies, including in strategic sectors, and are by far the main providers of finance to 
EU companies and SMEs. In today’s rapidly evolving geopolitical landscape, preserving banks’ 
ability  to  ensure  sufficient  credit  provision  to  the  EU  economy,  and  in  particular  to  SMEs 
adjusting to fragmented international markets, is of strategic importance for the EU. Banks are 
also enablers of capital markets, as they make capital markets deeper and more liquid by acting 
as issuers of securities, intermediaries for insurance, intermediaries for institutional, corporate 
and retail investors, and, in some cases, they are investors and liquidity providers themselves. 
A  single  rulebook  for  EU  banks  has  been  largely  put  in  place  by  the  banking  regulatory 
framework25.  Substantial  progress  has  also  been  made  in  establishing  the  Banking  Union, 
increasing  resilience  in  the  sector,  supporting  integration  and  boosting  international 
competitiveness. However, the Banking Union remains incomplete, notably in the absence of 
adequate arrangements for managing the failure of mid-sized banks and a European deposit 
insurance framework. While this is the case, the EU safety nets remain fragmented.  

The single rulebook for EU banks reflects internationally agreed standards, which are 
essential for global financial stability and to avoid a global regulatory race to the bottom. 
The most recent changes to the EU banking rules integrate the last elements of the Basel III 
standards and apply in the EU as of 1 January 2025. The EU implementation of these standards 
reflects a balanced compromise that keeps all of EU banks resilient, while responding to the 
specificities of the EU’s framework. At the same time, the Commission must be vigilant to 
avoid penalising EU banks that are internationally active on global financial markets, as 
well  as  preserving  their  competitiveness  in  European  markets  vis-à-vis  third  country 
banks. The Commission has reacted promptly to developments in other jurisdictions and will 
continue to defend the international level playing field, including in relation to the rules on the 
net stable funding ratio and the fundamental review of the trading book, where action by the 
Commission  is  imminent.  Moreover,  to  achieve  a  true  single  market  in  banking,  mobilise 
capital across the EU and foster the international competitiveness of the EU banking sector, it 
is  important  to  identify  and  reduce  barriers  to  market  integration  and  undue  administrative 
burdens.  

Proposed Policy Measures: 

•  The Commission invites the co-legislators to address shortcomings in arrangements 
to manage the failure of mid-sized banks by agreeing on an ambitious outcome in the 
crisis management and deposit insurance framework negotiations. The Commission 
stands ready to provide its full support in this process. In addition, the Commission 

25 Capital Requirements Regulation and Capital Requirements Directive. 

16 

 
 
 
 
 
 
 
 
 
 
 
 
will follow with decisive steps to  further develop the Banking Union, including by 
identifying a way forward on the European Deposit Insurance Scheme, considering 
discussions held so far based on the Commission proposal. 

•  The Commission will publish  in 2026 a report assessing the overall situation of the 
banking system in the Single Market, including the evaluation of the banking sector’s 
competitiveness.  

•  The Commission continues assessing developments in banking markets to ensure a 
swift  reaction  whenever  financial  stability,  the  internal  market,  or  international 
competitiveness of the EU banking sector is threatened.   

4. 

Outreach and Engagement 

The  fast-changing  geopolitical  and  geoeconomic  context  makes  the  Savings  and 
Investments  Union  a  vital  project  which  requires  urgent  progress,  commitment  and 
political ownership at multiple levels. This Communication sets out the Commission’s view 
on  how  to  make  a  significant  step  in  developing  the  Savings  and  Investments  Union.  The 
proposed  measures  are  challenging,  but  necessary  to  reach  a  tipping  point  for  EU  financial 
markets to effectively channel savings into investments, thereby creating more opportunities 
for citizens and companies and increasing the EU’s competitiveness. Continuous monitoring 
will ensure that the measures deliver on their goals and will allow for increasing intensity and 
additional measures whenever necessary.  

Delivering on this ambition for EU citizens is the joint responsibility of the Commission, the 
European Parliament and Member States. This requires regular engagement with the European 
Parliament  and  Member  States,  also  through  the  European  Council  and  the  Eurogroup,  to 
maintain  political  momentum,  take  action,  and  monitor  implementation.  It  also  requires 
engaging  with  the  financial  industry,  to  ensure  uptake  of  proposed  actions  and  encourage 
market-driven initiatives supportive of the objectives of the Savings and Investments Union. It 
is equally important to maintain a constant dialogue with the civil society organisations that 
promote equality and financial inclusion, as well as with youth organisations to ensure that the 
Savings and Investments Union is designed to benefit all EU citizens. The Commission will 
also work to build support and raise awareness on the objectives of the Savings and Investments 
Union  among  local  actors  such  as  businesses,  retail  investor  groups,  consumer  rights 
organisations, and think tanks, including through visits to all Member States.  

The  Commission  will  regularly  assess  progress  on  delivering  the  measures  of  this  strategy, 
including  through  a  range  of  indicators,  and  actively  seek  to  identify  obstacles  and  foster 
collaboration with co-legislators and all stakeholders to overcome them. 

•  The Commission will publish a Savings and Investments Union mid-term review by 
Q2 2027. This will give a state of play on overall progress and reflect input received 
from this outreach and engagement.  

17 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendix: 

Action 

Securitisation Review 

Channel for market participants to report on 
barriers within the single market 

EU Savings and Investments Accounts 

Means 

Legislative 

Date 

Q2 2025 

Non-legislative 

Q2 2025 

Legislative or non-
legislative 

Q3 2025 

Retail Investment Strategy 

Legislative 

Ongoing 

Financial literacy strategy 

Communication 

Q3 2025 

Increased opportunities for retail investors to 
contribute to funding of EU priorities 

Non-legislative 

Ongoing 

Recommendations on auto-enrolment, pension 
tracking systems and pension dashboards 

Non-legislative 

Q4 2025 

IORPs and PEPP Review 

Legislative 

Eligibility and clarification of equity 
investment by institutional investors  

Legislative and non-
legislative 

Market Infrastructure Package 

Legislative 

Improving cross-border provision of funds and 
reducing operational barriers facing asset 
managers 

Legislative and non-
legislative 

More integrated and efficient supervision 

Legislative 

EuVECA Regulation Review 

Listing Act Implementation 

Investment exits 

Legislative 

Legislative 

Legislative or non-
legislative 

Q4 2025 

Q4 2025 

Q4 2025 

Q4 2025 

Q4 2025 

Q3 2026 

Ongoing 

Q3 2026 

Review of the Shareholders Rights Directive 

Legislative 

Q4 2026 

TechEU initiative 

And ETCI 2.0 

Remove taxation barriers to cross-border 
investments 

EDIS 

CMDI 

Non legislative 

2026 

Non legislative 
(Recommendations, 
enforcement) 

ongoing  

Legislative 

Legislative 

ongoing 

ongoing 

18 

 
 
 
 
 
 
Report on banking system in the Single 
Market, including the evaluation of 
competitiveness 
SIU Mid-Term Review 

Report 

2026 

Communication 

Q2 2027 

19