The EU plans to expand the SIU and grant ESMA more powers to tackle cross-border barriers for asset managers, leveraging the RIS as a foundation, even as RIS adoption shifts to emphasize simplification and lighter regulatory burdens.

Efforts to create a Capital Markets Union to keep savers' funds inside Europe have advanced only marginally since 2015, facing similar obstacles of national interests, complexity, and changing political priorities.

A 2024 EU report noted about 300 billion euros of EU savings leave the region each year, prompting calls from policymakers to curb fragmentation and retain investment within Europe.

The European Union is pursuing a Savings and Investments Union (SIU) and related reforms to steer savers toward EU financial markets rather than funding the United States, but progress is slow due to competing national interests, technical complexity, and shifting political priorities.

Draghi-era analysis shows EU households’ net wealth rose 55% from 2009 to 2023, trailing the US growth of 151%, partly due to meager returns on euro-area current accounts (about 0.25%) and inflation around 2.2%, reducing incentives to invest.

Research from the Draghi era notes euro-area wealth growth lagging the US, with low current-account returns and persistent inflation diminishing incentives to move money into investments.

EU member states propose scaling Italy’s Savings Investment Plan (PIR) to the European level to channel more savings into European firms, potentially requiring a minimum 70% EU allocation.

The same figure of roughly 300 billion euros draining EU wealth is cited by policymakers as a driver to address fragmentation and channel more investment to European firms.

Industry voices, including the head of the EBA and think-tank proponents, urge stronger implementation of Draghi-era proposals and broader EU-level efforts to avoid siloed initiatives, while acknowledging the need to address trust, biased advice, and high fees that deter savers.

EU initiatives aim to strengthen the SIU by empowering ESMA and reducing cross-border barriers for asset managers, building on the Retail Investment Strategy, while adapting RIS toward simplification and burden reduction.

A pilot led by seven countries, including Spain, aims to introduce a Finance Europe label to help savers identify EU-backed investment products, with an anticipated Madrid announcement possibly in 2026 pending regulatory tweaks and demand.

Skepticism and trust issues, including biased advice and high fees, deter participation in EU investment schemes, with real-world examples of savers seeking greater confidence and accessible, trustworthy guidance.

In the euro area, households hold a substantial share of assets in cash or deposits—about 12.1 trillion euros, around 30% of wealth—with Germany illustrating risk aversion, having over 40% of financial assets in cash/deposits and only about 12% in equities.

Across the EU, household savings total about 12.1 trillion euros (roughly 30% of wealth), contrasting with the US where cash comprises a smaller share of total wealth, highlighting regional differences in cash versus investments.

Germany, in particular, has a heavy tilt toward cash with more than 40% of financial assets in cash/deposits and only about 12% in equities, signaling inertia toward equity investing.

Seven nations, headed by Spain, are testing a Finance Europe label to boost cross-border investment and awareness of EU-backed products, though rollout faces regulatory and demand-driven delays toward a 2026 timeline.