TOWARDS A UNION OF SAVINGS AND INVESTMENT: AN AMBITION FOR EUROPEAN COMPETITIVENESS

On March 6, 2025, as Commissioner Albuquerque addresses participants gathered in Luxembourg under the auspices of the European Investment Bank (EIB), her speech resounds as a call for the European Union to unlock vast reserves of private savings. With more than €10 trillion in untapped household savings, the Commissioner envisions a transformative opportunity for Europe’s economy.

To meet the challenges of green and digital transitions, infrastructure modernization, and defense consolidation, the EU must create a true investment market. She acknowledges the EIB’s central role and stresses the need for close coordination between the EU and Member States, emphasizing that issues related to taxation, pensions, and corporate law cannot be addressed solely at the EU level.

Savings in Search of Ambitious Projects

Commissioner Albuquerque passionately highlights the €10 trillion in European household savings, much of which is held in low-yield accounts or even in cash. She sees this as an immense potential engine for growth. Mobilizing even a fraction of these funds could transform the landscape for innovation, competitiveness, startups, and scale-ups, particularly in green and digital transformation sectors.

Europe, she argues, does not lack ideas or expertise—rather, it lacks bold and cross-border financing. The Union of Savings and Investment, as she envisions it, would simplify and increase transparency for savers, making it easier for them to channel their money into prosperity-driving projects without imposing constraints on their choices.

She also underscores the urgent need for private capital investment in defense, now a central pillar of an initiative called "ReArm Europe". The war in Ukraine has demonstrated that EU sovereignty is not just a political or military matter but also an economic one, requiring financial backing for strategic industries. The EIB, with its public-private investment experience, will play a pivotal role in structuring the necessary financial architecture to support this shift.

The March 19 Communication: A Strategic Roadmap

The Commissioner’s speech sets the stage for the upcoming March 19 Communication, titled "Union of Savings and Investment", which will outline a long-term strategy. The goal is not to dictate where private capital should flow but to remove barriers that prevent savings from naturally reaching the most productive investments.

She acknowledges the technical and political complexity of this endeavor. Structural obstacles arise from varying tax systems, corporate laws, and pension schemes across EU Member States. However, she insists that the Commission is ready to take bold action, arguing that inaction would be far more costly, leading to a stagnant financial market and weakened competitiveness.

The stakes are enormous. Europe’s industrial revival, infrastructure renewal, renewable energy transition, and digital modernization all require a massive influx of private capital. The Union of Savings and Investment aims to create a framework for long-term financing, recognizing that public budgets alone cannot sustain these ambitions.

The Commissioner also stresses that national governments must be on board, as key regulatory and tax hurdles remain at the national level. Issues such as savings taxation, investor protection, and administrative simplification must be addressed in collaboration between EU institutions and Member States.

The EIB’s Fundamental Role

Addressing an audience that includes representatives from the European Parliament, the European Stability Mechanism, and both public and private financial actors, Commissioner Albuquerque commends the EIB’s commitment. She describes the bank as the EU’s financial arm, capable of stimulating the investment market and encouraging private sector participation by mitigating risk.

She calls on the EIB to expand its role as a lender, investor, and catalyst, urging it to develop specialized financial vehicles targeting critical sectors such as artificial intelligence, batteries, clean hydrogen, and next-generation defense technologies. The EIB’s equity and guarantee instruments could help reduce risk aversion among savers, making it easier for individuals to invest in strategic sectors.

She also highlights the alignment between the EIB’s commitment to sustainable development and the mobilization of private savings. She insists that trust in the quality of EIB-supported projects will be key to encouraging widespread investment participation.

Beyond financial returns, she argues, this is about fostering European cohesion and proving that the continent can innovate and secure its own economic future, ensuring energy security and technological sovereignty.

Conclusion

At the European Investment Bank Forum in Luxembourg, Commissioner Albuquerque delivers a clear and ambitious vision: the Union of Savings and Investment must become the catalyst for a new European momentum.

She describes a Europe rich in talent, expertise, and financial resources, yet still constrained by fragmented financial markets. She calls for collective action, where the Commission, the EIB, and national governments work together to dismantle barriers, simplify investment products, and redirect savings toward Europe’s strategic priorities—innovation, digital transformation, green energy, infrastructure, and defense.

For the Commissioner, this is not just about competitiveness; it is about long-term prosperity. Whether Europe succeeds in transforming this vision into reality will depend on its ability to fully mobilize its financial resources and build a secure, sustainable future.

Full Speech (EN): Commissioner Albuquerque, EIB Forum, March 6, 2025

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