Savings and Investments Union: Commission outlines its plans
The European Commission has published its strategy for the Savings and Investments Union (SIU), outlining its plans for how to channel savings to the ‘right’ investments (e.g. investments designed to address challenges posed by climate change, rapid technological shifts and new geopolitical dynamics).
Replacing Banking Union and Capital Markets Union
The Draghi Report highlighted the challenges posed by the incomplete banking union (in particular the high regulatory compliance costs) and the “three main fault lines” which have hindered previous efforts towards a capital markets union (CMU): the lack of a single securities market regulator and single rulebook, a post-trade clearing and settlement framework that is less unified than in the US, and a lack of alignment between EU Member States insolvency and tax regimes. The SIU aims to consolidate efforts towards both a banking union and a CMU under one umbrella.
Retail Investors
The EU continues to grapple with how best to encourage retail investors’ participation in the capital markets, and retail investors are a key focus of the new SIU strategy. Approximately 70% of EU citizens’ savings (amounting to €10 trillion) are held in deposit accounts – different investment options and financial literacy are, according to the Commission, key to increasing citizens’ funding of EU investment opportunities.
A blueprint for savings and investment accounts or products, and their tax treatment, is planned for Q3 2025. The Commission is also pushing for progress in the Council / Parliament negotiations on the proposed Retail Investment Strategy (RIS) – those negotiations have proven challenging, and the Commission has threatened to “withdraw the proposal if the negotiations fail to meet the intended objectives of the Strategy.” A financial literacy strategy is also planned for Q3 2025 (the Department of Finance published the Irish Government’s National Financial Literacy Strategy 2025-2029 in March 2025).
For more information on the RIS, read our insights here:
Retail Investors and the EU Capital Markets: Commission publishes retail investment package
The European Commission’s Retail Investment Strategy
Other Proposals
Implementation of technical standards under the new Listing Act forms part of the policy measures. However, certain technical standards under the Listing Act, including implementing technical standards on the template and layout of prospectuses and summaries, will be delayed by at least 12 months according to ESMA’s recent letter to the Commission on priority deliverables for 2025.
Read our insights on the Listing Act here:
EU Prospectus Regulation: Listing Act changes relevant to debt capital markets
EU Market Abuse Regulation: Listing Act changes relevant to debt capital markets
As expected, a Q2 2025 legislative proposal to amend the EU Securitisation Regulation remains on the table (simplifying due diligence and transparency requirements and adjusting prudential requirements for banks and insurers are key themes).
Read our insights on the EU Securitisation Regulation here:
EU Securitisation Regulation: Commission launches 8-week consultation
Private Securitisations: ESMA proposes streamlined disclosure template
Of particular note, in the context of overcoming barriers to trading and post-trading infrastructures, an “ambitious” package is planned for Q4 2025 with “legislative proposals including rules on central securities depositories, financial collateral and settlement and on the trading market structure…” – more granular detail on the scope of those proposals isn’t available yet.
Measures to strengthen supervisory convergence are planned for Q4 2025, and it looks like plans to mitigate regulatory divergence risk by transferring certain tasks to EU authorities are likely. There is no definitive ‘yes’ or ‘no’ from the Commission in its SIU-related communications regarding whether it will ultimately look at a single SEC-style EU capital markets supervisor in line with the recommendations made in the Draghi and Letta reports.
Progress on the Commission’s proposed bank crisis management and deposit insurance (CMDI) package is a priority, and the Commission also hopes to find a way to finally make progress on the plans for a European Deposit Insurance Scheme. The Commission plans to publish a report in 2026 on the EU banking system (in particular its competitiveness).
Read our insights on the Commission’s CMDI proposal here:
Bank Resolution: Commission CMDI proposal published
Other aspects of the SIU Communication focus on planned policy measures relating to pensions (promoting auto-enrolment in occupational pension schemes, and reviewing the existing EU frameworks for IORPs and PEPPs), stimulating equity investments by institutional investors (particularly insurers), favourable regulatory capital treatment for banks that make equity investments under legislative programmes, measures to support exits by investors in private companies, a potential review of the Shareholder Rights Directive, removing barriers to the cross-border distribution of investment funds in the EU, and reducing operational barriers for asset managers operating as a group structure.
Keep an eye out for our regular insights and our monthly Horizon Scanner: Finance for updates on the SIU deliverables.