EU’s Savings and Investments Union: two new initiatives

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The European Commission has announced two major initiatives to advance the Savings and Investments Union: the comprehensive package focuses on improving financial literacy for all and at all life stages and introduces a blueprint for Savings and Investment Accounts as the tool aimed at making investing simpler and more accessible for everyone. 

Background: the SIU
Building on the achievements of the capital markets union and banking union, the SIU is a key initiative to strengthen EU prosperity and competitiveness. It aims at developing a strategy for supporting household wealth creation by increasing the returns on savings of EU citizens (in a risk appropriate manner), while widening the financing opportunities for businesses. It encompasses capital markets and the banking sector, as well as retail investment, and is considered a crucial enabler of competitiveness in the EU competitiveness compass. It aims to unlock funds to boost the EU’s sustainable competitiveness, support innovation, drive the clean transition and promote digital and tech diffusion. It will focus on increasing returns on savings for EU citizens and financing opportunities for businesses.
To achieve this, the Commission plans to present a comprehensive strategy on the SIU, aiming to ensure that all Member States and stakeholders benefit from strong, integrated financial markets, together with well‑developed domestic markets.
More in: https://finance.ec.europa.eu/news/commission-seeks-feedback-savings-and-investments-union-2025-02-03_en. And on the EU capital market union in: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/capital-markets-union/what-capital-markets-union_en

The SIU aims to create better financial opportunities for EU citizens, while enhancing our financial system’s capability to connect savings with productive investments. This will lead to more choice for savers who wish to grow their household wealth and allow businesses across Europe to grow.
SIU is a “horizontal enabler” that would create a financing system benefiting investments in the EU’s strategic objectives; the European actions in addressing modern challenges (i.e. climate change, rapid technological shifts and new geopolitical dynamics) are demanding significant investments, which are estimated at additional €750‑800 billion per year by 2030, and which are further impacted by increased defence needs.
Much of these additional investment needs relate to SMEs and innovative companies, which cannot rely solely on bank financing. By developing integrated capital markets – alongside an integrated banking system – the SIU can effectively connect savings and investment needs.

Source – Commission press release, September 30, 2025 at: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2236
Note. Legislative documents in Commission’ s weblinks: = Communication on financial literacy; = Recommendation the savings and investment accounts; = Staff working document the savings and investment accounts.
Source: https://finance.ec.europa.eu/publications/eu-boost-financial-literacy-and-investment-opportunities-citizens_en

Financial literacy’s strategy
The strategy aims to enable citizens to engage in capital markets with confidence and on a sound basis; it includes a comprehensive approach based on four interrelated pillars of action:
= Coordination and best practices: all EU states, public and private stakeholders shall carry out initiatives aimed at improving financial literacy. The Commission will facilitate mutual learning and exchange of best practices and support convergence of approaches where appropriate.
= Communication and awareness raising: although the financial literacy programs and initiatives are essential, they can only be effective if people know about them. An EU-wide awareness-raising campaign will bolster existing national action in this area, including through a network of “financial literacy ambassadors”.
= Funding for financial literacy initiatives includes adequate research: hence, the Commission encourages the member states to use existing EU funding channels to support financial literacy initiatives and research that can address the citizens’ diverse needs. Enhanced financial literacy empowers citizens by equipping them with the knowledge and skills necessary to make informed financial decisions – contributing significantly to their overall well-being. It aligns with the broader Union of Skills initiative by promoting economic inclusion and individual empowerment.
More on the Union od skills in:
https://commission.europa.eu/topics/eu-competitiveness/union-skills_en

= Monitoring progress and assessing impacts is essential in evaluating the effectiveness of financial literacy measures: therefore, the Commission will conduct regular Eurobarometer surveys and encourage the member states to develop evaluation tools.
Reference to: https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_2237

The financial literacy strategy aims to help citizens make sound financial decisions, ultimately improving their well-being, financial security and independence. With the right combination of financial knowledge and skills, citizens can budget better, avoid scams and fraud, save more efficiently and feel better equipped to invest for their future. Financial literacy levels remain low in the EU – less than one fifth of EU citizens have a high level of financial literacy according to the Eurobarometer-2023, with significant differences across the member states. The Strategy therefore includes measures to enhance financial awareness for all citizens and support the EU states’ efforts to improve financial literacy.

On Savings and Investment Accounts, SIA
EU citizens also need simple and accessible investment opportunities; thus, the present package also includes a blueprint for Savings and Investment Accounts (SIAs), in the form of a Commission Recommendation to the member states.
SIAs are accounts provided by authorised financial services providers, even online, which enable retail investors to invest in capital markets instruments. These accounts often come with tax incentives and simplified tax procedures, making them an attractive option for citizens. SIAs will foster a stronger investment culture among EU citizens and transform how they engage with capital markets. SIAs can enable citizens to achieve higher returns on their savings, compared to keeping them in bank deposits, all while maintaining full control over which financial products or economic sectors they choose to invest in. While investing carries risks, these can be managed through diversification and a long-term investment approach.
By moving some of their savings into more productive investments, citizens can also facilitate the financing of businesses, driving economic growth and job creation across Europe, in line with the SIA’s objectives. Investing in the European economy allows them to contribute to and benefit from the EU’s competitiveness agenda.
Among vital recommendations are the following:
= A wide array of authorised financial services providers (such as banks, investment firms, neo brokers), including cross-border ones, should be able to offer SIAs, boosting competition and innovation.
= Providers should offer a simple, reliable and easily accessible user experience for retail investors, both online and offline, that makes the buying and selling of assets within an SIA seamless.
= Flexibility: retail investors should be allowed to open multiple accounts, including with different providers, and should not be faced with excessive fees or cumbersome processes when transferring their portfolios.
= SIAs involve broad investment opportunities by offering investments in various products such as shares, bonds and investment funds, allowing citizens to diversify their portfolios across asset classes, issuers, manufacturers geographies and risk profiles, while excluding highly risky or complex products. SIA providers are encouraged to provide citizens with investment options that allow them to channel their investments into the EU economy to contribute to strategic EU priorities.
= Tax incentives are key in encouraging the SIAs and achieving broader retail investor participation. Tax incentives should be well targeted and simple for retail investors, SIA providers and tax administrations to understand and apply.
= Simplified taxation process shall streamline tax procedures, including relying on SIA providers for tax declarations providing for the great benefits in retail investors.
Reference to: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2236

Commissioners’ opinion
= Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union: “Financial literacy is key to wellbeing and independence. Through our Strategy on financial literacy, we will work closely with Member States to equip everyone with the financial skills required to budget better, save more and invest for their future. But knowledge alone is not enough. To prepare for their big goals in life, citizens also need opportunities to put their savings to work. That is why we are creating a European blueprint for savings and investment accounts, designed to make investment options more accessible. With SIAs, Europeans could get better returns on their savings, while supporting the financing of EU businesses, economic growth and job creation”.
= Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth: “The Savings and Investments Union is an important step for EU’s economy. This is good for our capital markets, for people’s financial future, for sustainable growth and innovation. With interesting tax incentives, people are more encouraged to invest in higher-return investments, which in turn will help us find growth capital and be more competitive”.