From Strategy to Delivery: Member States Must Now Act on the Savings and Investments Union

In a bid to enhance the efficiency, scale, and connectivity of markets, the European Commission has laid out a comprehensive strategy aimed at benefiting both EU households and businesses. This initiative, known as the Savings and Investments Union (SIU), was launched in March 2025 and represents a coordinated approach combining EU-wide measures and complementary national reforms designed to deepen and integrate European capital markets.

The SIU addresses both supply and demand sides of the market to improve outcomes. On the supply side, the market integration and supervision package is poised to enhance liquidity, transparency, and investor confidence while simultaneously reducing fragmentation across member states. This initiative is expected to unlock long-term financing in strategic sectors, including infrastructure, energy transition, innovation, and digitalisation. On the demand side, the introduction of the Recommendation on savings and investment accounts (SIAs) and reforms to supplementary pensions is particularly noteworthy. These reforms, which include updates to the Pan-European Personal Pension Products (PEPP) and the Occupational Pension Funds Directive II (IORP II), aim to promote a culture of long-term investment through enhanced financial education and informed decision-making among households.

Through these collective initiatives, the objective is to create a more resilient, competitive, and interconnected European capital market that effectively channels the continent’s considerable savings into productive investments throughout the EU. In particular, this strategy is expected to deliver tangible benefits for savers, investors, and businesses alike. Citizens will have greater access to transparent and potentially tax-efficient savings vehicles and well-governed pension products, which are likely to yield superior long-term returns compared to traditional bank deposits. Additionally, innovative tracking tools will provide individuals with early visibility of their consolidated pension entitlements, thereby enabling more effective retirement planning and informed financial choices throughout their working life.

For companies operating within the European market, the anticipated enhancements to capital market depth and liquidity will facilitate improved access to financing, optimize pricing mechanisms for both debt and equity issuances, and support strategies for long-term investments that drive innovation, productivity, and job creation.

While some improvements have already been observed under the current mandate of the Commission, the anticipated full impact of the SIU on market depth and cross-border integration is expected to unfold progressively over the medium term. This gradual realization of benefits will aim to fortify investment flows and bolster economic resilience across the European landscape.

The collaborative emphasis inherent in the SIU acknowledges that many of the key levers for success—such as taxation, the design of supplementary pensions, and financial literacy—are predominantly controlled at the national level. As such, ensuring that progress is both consistent and timely necessitates robust cooperation between EU institutions and member states. The Commission is committed to closely monitoring advancements in these realms, providing necessary guidance and technical assistance, and encouraging member states to translate the established Recommendations into concrete national reforms.

Simultaneously, the European Parliament and Council, acting as co-legislators, are anticipated to reach consensus on various legislative files before the end of 2026—including the crucial market integration package—while implementing measures designed to mitigate cross-border barriers and improve access to capital markets.

The conditions for achieving success are explicitly outlined: sustained political commitment from member states, coordinated actions across EU and national levels, and a collective willingness to prioritize reforms aimed at enhancing market integration. An effectively integrated single market for capital will surpass the sum of its national components, unlocking considerable benefits for both enterprises and citizens. If Europe is to maintain its competitiveness on a global scale, it must address investment barriers, expand participation in retail investment, and improve frameworks surrounding supplementary pensions.

As the urgency for action intensifies, it becomes evident that the time for strategic implementation is now. EU leaders have underscored the critical need to advance this initiative. A recently established roadmap, titled “one market, one Europe,” aims to ensure timely agreement on SIU proposals, a development that is welcomed but not without risks. Any delays could undermine the momentum of the Strategy, with Europe unable to afford such setbacks, particularly in light of the pressing requirement to create favorable conditions for investment and growth while actualizing the full potential of the single market.

The European Commission is determined to pursue decisive action and will continue to oversee progress toward ambitious, forward-looking structural changes in capital markets, extending support to member states throughout the process.

Alexandra Jour‑Schroeder serves as the Deputy Director-General and Acting Director for General Affairs within the Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) of the European Commission. This article was initially published in the March issue of Eurofi Magazine.