Opportunities through the Savings and Investments Union

Your Expert for Questions

Clemens Koch
Leader Financial Services PwC Germany
Tel.: +49 175 2290259
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Financial markets in transition: the EU’s Savings and Investments Union as a catalyst for change

The Savings and Investments Union (SIU) is a key EU initiative aimed at strengthening prosperity, competitiveness and capital market integration across the entirety of the financial sector. It aims to mobilise private and institutional investment by making more productive use of financial resources, facilitating access to capital markets, removing regulatory barriers and overcoming national fragmentation. In order to finance the additional investment of approximately €800 billion per year required until 2030 across the EU’s of climate and digitalisation transition efforts as well as the defence readiness priorities, more private capital is to be channelled into sustainable projects. To this end, the EU is developing harmonised EU-wide savings and investment products, measures to strengthen investor protection, tax reforms, a strategy to improve financial education and the expansion of pan-European pension solutions. In addition, simplifications for institutional investors, the promotion of start-ups, the reduction of capital market fragmentation and the harmonisation of supervisory activities are planned. Accordingly, the European Commission has defined five work packages in its SIU strategy paper. The drafting and publication of the first set of regulations, recommendations and communications on the various work packages is expected to be completed by the end of 2026.

For financial service firms, this will result in new regulatory requirements but also a wealth of opportunities, including the Retail Investor Strategy, a market infrastructure package to harmonise EU financial markets plus more fundamentally, a rebalanced distribution of supervisory responsibility between the EU and national levels.

In addition to the challenges, the SIU offers a multitude of opportunities. PwC supports you in navigating these changes, transforming your business model and seizing opportunities.

Far-reaching changes for EU financial markets

The EU is pushing ahead with far-reaching capital market integration with the Savings and Investments Union. The aim is to make better use of private savings, improve corporate financing and make the Single Market for financial services more efficient. Greater retail investor participation is to be strengthened through greater choice in  tax-privileged savings accounts and securities accounts, improved financial education offerings and simplified access to capital market products. At the same time, regulatory barriers for institutional investors are being removed to encourage investment in venture capital, private equity and specific strategic sectors.

A key focus is on eliminating national fragmentation: trading and post-trading infrastructures are to be consolidated, fund distribution simplified and the asset management sector strengthened. Uniform supervisory standards and a stronger role for EU supervisory authorities are intended to facilitate cross-border activities and strengthen investor confidence. For banks, the completion of the banking union with a uniform set of rules and a European deposit guarantee scheme is crucial. 

Diversification as an opportunity for financial service providers

New opportunities are also opening up for insurers and occupational pension institutions (IORPs), for example through the development of innovative pension and investment products and greater integration into  European capital markets. Improving access to alternative investments, such as in infrastructure projects, renewable energies and real estate, present further options for insurers and asset managers to diversify their portfolios and achieve higher returns. 

With the expansion of digital technologies and the evolution of crypto assets, investors, from VC to traditional asset managers to retail investors are presented with a breadth of opportunities from clearer rules that empower innovative start-ups and blockchain-based projects to thrive. The combination of increased efficiency and new markets strengthens competitiveness and creates development opportunities. In short, SIU offers new opportunities for growth, efficiency and innovation – but also requires strategic adjustments in product design, compliance and market positioning.