The European Commission is advancing the Savings and Investments Union to provide tangible benefits for all EU citizens through improved financial literacy and accessible investment opportunities. The initiative includes two key proposals: a financial literacy strategy aimed at enhancing citizens’ financial awareness throughout their lives, and a blueprint for simple, user-friendly investment tools.
The financial literacy strategy addresses the fact that less than 20% of EU citizens currently possess a high level of financial knowledge. It seeks to strengthen financial awareness through coordination and sharing of best practices at both national and international levels, an EU-wide awareness campaign, funding for literacy initiatives and research, and ongoing monitoring and impact assessment. By equipping citizens with the knowledge and skills to make sound financial decisions, budget effectively, avoid scams, and invest wisely, the strategy aims to help individuals maximize the value of their savings and prepare for their financial futures.
In addition to education, the Commission is promoting Savings and Investment Accounts (SIAs) as a simple and accessible way for citizens to grow their wealth. SIAs, offered by authorized financial services providers, enable retail investors to invest in capital markets with tax incentives and simplified tax procedures. These accounts allow citizens to achieve higher returns compared to traditional bank deposits, choose which financial products and sectors to invest in, and in doing so, support EU businesses, economic growth, and job creation.
While SIAs already exist in some EU countries, the Commission is recommending their introduction across all member states. Key features include a variety of providers to encourage competition, a simple and reliable user experience for buying and selling assets, flexibility to open multiple accounts without unnecessary fees, broad investment opportunities across shares, bonds, and funds, and well-targeted tax incentives combined with streamlined tax procedures.
The Commission will collaborate with EU countries and stakeholders to implement these measures, aiming to ensure citizens feel confident managing their money, have better access to investment opportunities, and are empowered to thrive financially.
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