EU pushes literacy and savings reforms to unlock €1.2 trillion 

BRUSSELS – The European Commission is making a bold bid to redirect household savings into the bloc’s economy, unveiling on Tuesday a package of measures it says could unlock more than €1.2 trillion in retail investment over the next decade. The package marks the latest step in the EU’s long-running effort to advance the Savings and Investments Union.

The twin initiatives combine a new EU-wide financial literacy strategy with a blueprint for Savings and Investment Accounts, designed to help citizens make smarter financial choices while steering cash into capital markets. Together, the reforms will help reinforce citizens’ financial resilience while giving European businesses access to long-term financing.

Closing Europe’s literacy gap

Financial literacy levels remain strikingly low across the bloc. A Eurobarometer survey in 2023 found that fewer than one in five Europeans displayed a high level of financial knowledge, with notable disparities between Member States.

To address this, the Commission’s new strategy is built on four pillars: pooling of best practices, running public awareness campaigns, funding support for national initiatives and research, and systematically tracking progress.

The stated aim is to give Europeans the confidence to take control of their money – from managing everyday budgets to building up savings for the future.

A new blueprint for investing

Alongside the literacy drive, the Commission is proposing a blueprint for Savings and Investment Accounts (SIAs). These accounts, offered by a broad range of authorised financial providers including online platforms, will give retail investors easier access to shares, bonds, and investment funds. The scheme would include tax incentives and streamlined procedures to encourage participation.

Commissioner for Financial Services and the Savings and Investments Union, Maria Luís Albuquerque said the initiatives are meant to work hand in hand. “Financial literacy is key to wellbeing and independence,” she said. “But knowledge alone is not enough. Citizens also need opportunities to put their savings to work.”

The Commission argues that SIAs would give citizens the chance to earn higher returns than traditional deposits, while maintaining control over how their money is invested. By directing more household savings into capital markets, the scheme promises to expand financing for European businesses, driving growth and innovation.

The road ahead

Brussels is calling on Member States to roll out or adapt national frameworks, drawing on best practices and existing schemes in Denmark, France and Italy. The Commission plans a midterm review in 2027 to measure whether the reforms are actually changing how Europeans save and invest.