EU unveils Savings and Investments Union strategy
20 March 2025 EU
Image: European_Commission
The European Commission has published its strategy for the Savings and Investments Union (SIU), outlining measures to improve how the EU financial system channels savings to productive investments.
The aim is to offer EU citizens broader access to capital markets and better financing options for companies while boosting economic growth and competitiveness.
Ursula von der Leyen, president of the European Commission, explains the proposal represents a double win.
“Households will have more and safer opportunities to invest in capital markets and increase their wealth,” she says. “At the same time, businesses will have easier access to capital to innovate, grow, and create good jobs in Europe.”
By developing integrated capital markets, alongside an integrated banking system, the SIU aims to effectively connect savings and investment needs.
In terms of the direct impact on the securities finance sector, a spokesperson for the International Securities Lending Association (ISLA) comments: “This important milestone provides ISLA with a clear framework for future engagement with policymakers and regulators across the EU, as we position securities finance in the correct context and highlight its role in the development of deep and liquid markets.”
The SIU is focused on encouraging retail savers to hold more of their savings in capital market instruments, with the objective of creating a more dynamic and efficient financial ecosystem that aligns with the role of securities lending in enhancing market liquidity.
Additionally, the strategy highlights the importance of improving the efficiency of cross-border operations.
“We are pleased to see the commitment to reduce inefficiencies stemming from fragmentation and the removal of barriers to cross-border operations. This includes a review of taxation, post-trade processing, and collateral legislation,” ISLA adds.
The actions proposed in this strategy will be further developed in continued dialogue with stakeholders, with the most impactful actions being given priority in 2025.
Implementing the SIU will rest on both legislative and non-legislative measures, as well as measures to be developed by the EU member states themselves.
The commission will publish a mid-term review of the overall progress in achieving the SIU in Q2 2027.
The aim is to offer EU citizens broader access to capital markets and better financing options for companies while boosting economic growth and competitiveness.
Ursula von der Leyen, president of the European Commission, explains the proposal represents a double win.
“Households will have more and safer opportunities to invest in capital markets and increase their wealth,” she says. “At the same time, businesses will have easier access to capital to innovate, grow, and create good jobs in Europe.”
By developing integrated capital markets, alongside an integrated banking system, the SIU aims to effectively connect savings and investment needs.
In terms of the direct impact on the securities finance sector, a spokesperson for the International Securities Lending Association (ISLA) comments: “This important milestone provides ISLA with a clear framework for future engagement with policymakers and regulators across the EU, as we position securities finance in the correct context and highlight its role in the development of deep and liquid markets.”
The SIU is focused on encouraging retail savers to hold more of their savings in capital market instruments, with the objective of creating a more dynamic and efficient financial ecosystem that aligns with the role of securities lending in enhancing market liquidity.
Additionally, the strategy highlights the importance of improving the efficiency of cross-border operations.
“We are pleased to see the commitment to reduce inefficiencies stemming from fragmentation and the removal of barriers to cross-border operations. This includes a review of taxation, post-trade processing, and collateral legislation,” ISLA adds.
The actions proposed in this strategy will be further developed in continued dialogue with stakeholders, with the most impactful actions being given priority in 2025.
Implementing the SIU will rest on both legislative and non-legislative measures, as well as measures to be developed by the EU member states themselves.
The commission will publish a mid-term review of the overall progress in achieving the SIU in Q2 2027.
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