European Commission communication on the Savings and Investments Union

The European Commission has unveiled its strategy for the Savings and Investments Union (SIU), an initiative to improve the way the EU financial system channels savings to productive investments. Alongside the communication, the Commission also published an accompanying press release and questions and answers. A factsheet includes a summary timetable for key proposed measures. In Q2 2027, the Commission will publish a mid-term review of the overall progress in achieving the Savings and Investments Union.

Implementing the SIU requires a range of policy measures, which are grouped under four headings:

• Citizens and savings—encouraging and incentivising retail customers to hold more of their savings in capital market instruments.
• Investments and financing—promoting investment in equity and certain alternative assets, namely venture capital, private equity and infrastructure.
• Integration and Scale—removing sources of fragmentation in EU capital markets, whether regulatory, supervisory or political, to allow for the possibility of market-driven consolidation.
• Efficient Supervision in the Single Market—harmonised supervision is an objective of the SIU. All financial market operators should receive the same supervisory treatment irrespective of their location across the Union.

Among the specific proposals, in Q2 the Commission will set up 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. In Q4, the Commission will publish what it describes as 'an ambitious package of legislative proposals' including rules on central securities depositories, financial collateral and settlement and on the trading market structure, and consider replacing Directives with Regulations. It also proposes legislation to remove remaining barriers 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.

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