- The European Commission seeks to offer EU citizens broader access to capital markets and better financing options for companies.
- The plan is part of the Commission’s strategy for the Savings and Investments Union (SIU).
- Finance Finland finds the SIU’s objectives supportable but emphasises the need for a market-driven approach instead of more regulation.
- Finance Finland welcomes the Commission’s proposal to promote national savings and investment accounts by sharing existing best practices.
- Finance Finland also supports the Commission’s plan to withdraw the Retail Investment Strategy (RIS) proposal if the negotiations fail to meet the intended objectives of the RIS.
The European Commission unveiled its strategy for the Savings and Investments Union (SIU) on 19 March 2025. The SIU builds on the EU Capital Markets Union initiative, which has been under way for a long time.
With the Savings and Investments Union, the Commission is looking to boost economic growth by facilitating investment and the cross-border distribution of funds. Part of this goal is to encourage citizens to save and invest. This fosters citizens’ wealth while boosting the EU’s economic growth and competitiveness.
The Commission’s SIU strategy highlights the role of retail investors. The goal is to offer citizens more opportunities to invest in capital markets while giving businesses easier access to capital.
“The SIU strategy’s objective of encouraging citizens to put their savings to work in the capital markets is a good one. The initiative to develop national savings and investment accounts based on existing best practices supports this objective nicely”, says Finance Finland’s Head of Investor Protection Terhi Valtonen.
Valtonen underlines that the savings and investment accounts must be developed at the national level. Current legislation already allows for such accounts, so no new legislation is needed. New products will be launched as the demand in the market increases.
Member states should create incentives for investment
The Commission should appeal to the member states to create incentives for investment. The Commission emphasises that the SIU will require joint efforts from EU institutions, member states as well as the private sector.
“Even the Commission states that capital markets cannot be strengthened by increasing EU regulation alone and that the actions of the member states have a crucial role in this work. The development of capital markets must be market-driven, not rely on creating new regulation”, Valtonen points out.
The Commission is also considering withdrawing the Retail Investment Strategy (RIS) proposal if the negotiations fail to meet the proposal’s intended objectives of promoting retail investment and simplifying investor journeys.
Finance Finland welcomes this approach.
“As it stands now, the RIS package would only introduce unnecessary requirements that would be too heavy and burdensome for financial sector companies and investors alike. The proposal must undergo drastic changes to give the RIS even a fighting chance to meet its intended objectives.”
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