Written by Issam Hallak.
The EU is facing the challenge of mobilising massive investments required to meet its strategic priorities and must find effective ways to finance them. In response, the European Commission published the savings and investments union (SIU) action plan on 19 March 2025, designed to channel EU savings into productive investments. This briefing presents an overview of the plan.
The SIU was launched in the context of the Draghi and Letta reports, which set out recommendations for strengthening the EU’s single market and competitiveness. Announced in the Commission’s Competitiveness Compass (the January 2025 roadmap to restore and boost the EU’s economic dynamism), it places strong importance on mobilising private financing for key EU priorities such as innovation, digitalisation, defence and the green transition. The SIU seeks to further integrate the EU’s financial system and make its capital markets more attractive to investors.
The SIU is structured around four work strands. The first focuses on the demand side – savers and investors – promoting effective savings instruments that link citizens’ savings with productive investments. The second targets the supply side by expanding financing options for firms. The remaining two strands aim to strengthen market infrastructure and advance supervisory convergence, which could, in specific areas, evolve towards a single supervisory framework. Key proposals include amendments to securitisation rules (ongoing), revised rules and products for supplementary pensions, and measures to improve financial market infrastructure. The SIU has received support from the European Parliament through its September 2025 resolution on EU competitiveness, which also makes some remarks and offers further directions for action.
Read the complete briefing on ‘Savings and investments union: Overview and state of play‘ in the Think Tank pages of the European Parliament.
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