The European Commission proposed on 19 Mar 2025 a strategy to better channel up to €10 trillion in bank deposits throughout the union into urgently needed strategic investments. (source)

EU Commissioner for Financial Services Maria Luis Albuquerque told reporters in Brussels that “too few European citizens currently make a decent return on their hard-earned savings, at least not in a simple and cost-efficient way.” “This is unfortunate and a loss to all of us,” she added.

The EU does not lack capital: European consumers save €1.4 trillion a year, while US households save €800 billion. However, €300 billion of these savings are transferred to non-EU markets annually.

By enhancing the flow of resources into profitable ventures, the proposed Resources and Investments Union (SIU) seeks to rectify these lost chances and unleash the full potential of the bloc’s capital markets for companies and people alike.

Albuquerque stated, “We must aim to make investing in Europe the clear choice by establishing the conditions that will allow us to offer competitive returns, low barriers, and attractive opportunities.”

According to Mario Draghi’s landmark report on competitiveness issued last year, the EU will require at least €750–800 billion annually by 2030 to remain competitive against major players like the US and China.

Last September, the former prime minister of Italy declared, “We have reached the point where, without action, we will have to either compromise our welfare, our environment, or our freedom.” He encouraged member states to act quickly to prevent falling behind on the international scene.

However, the bloc’s goals cannot be met by public funds alone, so the EU is looking into measures to increase private capital mobilization and make it easier for EU businesses to obtain financing.

The commission will work with the Savings and Investments Union to remove obstacles that impede banks, pension funds, and insurers from making equity investments.

In order to free up bank resources and enable improved support for businesses, it will also examine the EU’s securitization regulations, “focusing on due diligence, transparency, and prudential requirements for banks and insurers,” the Commissioner added.

To attract private investors to contribute to projects that support the bloc’s political and economic objectives, the EU also depends on national promotional banks and the European Investment Bank Group.

In order to assist companies in expanding throughout the EU, the single market’s inefficiencies will be reduced, and legal and supervisory obstacles to cross-border activities will be removed.

“European businesses cannot benefit from the size and synergy of the single market. According to Albuquerque, this is expensive and places the EU at a competitive disadvantage.

Compared to the US market value of its largest banks, the EU’s banking industry is still modest and fragmented. As per FactSet, JPMorgan’s market capitalization exceeds the sum of the market capitalization of the ten largest banks in Europe.

A reallocation of supervisory responsibilities between the national and EU levels, as well as greater use of convergence mechanisms, are among the measures the Commission intends to implement to guarantee that all participants in the financial market are treated fairly throughout the EU.

Stakeholders have responded to the communication in a variety of ways.  

 According to Finance Watch head economist Thierry Philipponnat, the SIU is a “repackaging” of the Capital Markets Union’s 2020 goals.

“Europe has enormous capital needs, especially in the area of climate change, that private finance cannot supply.” SIU won’t deliver without a rethink on public finance,” Philipponat stated, adding that member states’ lack of political will is the issue.  

However, because the SIU is more comprehensive than the long-stalled Capital Markets Union initiative, the European Banking Federation thinks it is much more than a rebranding exercise.  

According to Sébastien de Brouwer, deputy CEO of the European Banking Federation, “The idea (of the SIU) is very much to encourage citizens to continue investing in financial markets for their own future and to diversify, but also most likely to get a better return in the long term for their retirement,” he told Euronews.

“To ensure that banks remain “competitive, profitable, and stable” and that banks’ lending capacity is further expanded or unleashed, it will also be necessary to review and, if needed, streamline and simplify regulation and supervision,” de Brouwer added.

The Great European Savings Conundrum

The annual savings of Europeans are €1.4 trillion, about twice that of Americans. However, each year, €300 billion of those savings are lost to non-EU markets, sustained by foreign economies while European companies struggle to raise finance. In order to keep this trend, the SIU will:

• Remove obstacles that prevent pension funds, banks, and insurers from making equity investments.
• Update financial regulations to promote businesses and free up funds.
• Reduce red tape to facilitate international investment.
• Entice private investors to work with EU institutions to co-finance significant projects.

A Race Against Global Giants

There is actual pressure. According to Mario Draghi’s competitiveness report, without €750–800 billion in yearly investments by 2030, Europe will lag behind the US and China, an outcome the EU cannot afford.

“We are at a turning point. We run the risk of compromising our freedom, our environment, or our well-being if we do nothing,” Draghi cautioned.

However, not everyone is convinced. Finance Watch’s Thierry Philipponnat rejected the SIU as “just a repackaged Capital Markets Union,” arguing that private funding is insufficient to close Europe’s investment gap, particularly when it comes to climate action. The actual problem? Insufficient political will.

The SIU is viewed as a breakthrough by others, such as the European Banking Federation. The Federation’s deputy CEO, Sébastien de Brouwer, stated, “It’s not just a rebranding—it’s a real effort to help citizens invest wisely, grow their wealth, and support Europe’s future.”

The Battle for Europe’s Future

Brussels knows that the continent’s economic future will continue to be at risk and that European companies will continue to lose out without the arrival of a financial revolution. For the SIU, survival is more important than money.

Will this ambitious plan prove to be another bureaucratic fantasy, or will it ultimately release Europe’s financial potential? There’s no denying that time is running out.

Debunking the ‘Savings Confiscation’ Myth: The Real Story Behind Europe’s €10 Trillion Investment Push

Despite a widely circulated rumor on social media, the EU executive is not seeking to “confiscate” up to €10 trillion in funds hidden away in the savings accounts of European residents for use in defense. (source)

Driven by an article on the Russian official news agency TASS, Euroverify has identified the fake allegations on X, TikTok, Facebook, and YouTube.

According to the misinformation campaign, Brussels wants to “militarize the EU” and “fund its war machine” by taking money from public savings.

The baseless allegations appear to have been put together after the EU executive in Brussels announced on March 19.

In a new attempt to persuade Europeans to invest their savings in EU assets rather than keeping them in bank accounts, the Commission on that day launched a new plan for the Savings and Investment Union (SIU), a rebranding of the previous Capital Markets Union.

This proposal seeks to provide savers with tax incentives and centralize market supervision. Actually, the Commission wants to make sure savers make more money so the bloc can make strategic investments that are desperately required.

The official claims that approximately €300 billion of the €10 trillion in savings that citizens currently have in low-yield savings accounts are invested annually in non-EU markets.

“Europeans are among the best savers in the world, yet they are not getting significant returns on their savings,” remarks European Commissioner for Financial Services Maria Luís Albuquerque in a speech in Frankfurt on March 6th, giving a sneak peek at the idea. “This is simply not fair.”

At an EU leaders’ summit on March 20, European Commission President Ursula von der Leyen stated, “The Savings and Investment Union has as its goal that citizens get more and better return on their money, but also that businesses have access to the much-needed capital.”

This does not imply that the EU executive would have access to the personal savings accounts of its citizens. In actuality, the bloc has some of the strictest laws in the world that are intended to safeguard savings accounts.

Why are users claiming savings will be spent on defense?

Building a strong European Savings and Investments Union is seen as essential to boosting the bloc’s competitiveness and releasing funds for defense and other vital areas.

It might free up funds for larger companies and small and medium-sized businesses to invest more in strategic initiatives, such as expanding the continent’s defense industry.

“Both in Brussels and in the Member States, we need to find the instruments to channel the enormous amount of private savings to the investments we need, from energy to innovation, from industry to housing, from digital to space or defense,” stated Albuquerque.

Earlier in March, the EU executive presented a different plan to “re-arm” the continent in reaction to Russia’s aggressive conflict in Ukraine and the risk it poses to the continent as a whole.

The proposal has a potential value of up to €800 billion. However, the headline amount is purely speculative.

The majority of that amount would be made available by changing EU fiscal regulations to allow member states to increase defense spending without using the so-called excessive deficit procedure, which the EU employs to control national debt and deficits.

In order to give member states up to €150 billion for defense expenditures, the Commission will also try to raise funds on the capital markets.

Last month, Guntram Wolf, a senior analyst at the think tank Bruegel, told Euronews that while this increase in expenditure might put “some pressure on prices” and raise inflation “at least slightly,” the proposal would not otherwise burden taxpayers.

Final Thoughts

If you’re feeling uncertain about the safety of your savings and looking to move your money to a more secure and stable location, the UAE stands out as a strong choice for investment. Recent developments in the EU — including the European Commission’s proposal to redirect citizens’ savings towards strategic sectors like defense and the economy — have raised concerns among investors. 

While official sources clarify that there are no plans to confiscate savings, the growing conversation around using personal finances for national agendas can be unsettling. 

In contrast, the UAE offers investor-friendly policies, financial stability, tax advantages, and full control over your assets, making it an appealing haven for those seeking peace of mind and long-term growth for their wealth.