EU to boost financial literacy and investment opportunities for citizens

The Commission is advancing the savings and investments union to deliver tangible benefits for all EU citizens. Two new proposals focus on improving financial literacy at all stages of life and introducing a blueprint for an easy and accessible investment tool.

Financial literacy strategy

Less than 20% of EU citizens have a high level of financial literacy, according to a recent survey. The new strategy aims to enhance citizens’ financial awareness and support EU countries in improving financial literacy, through

• coordination and sharing of national and international best practices
• communication and an EU-wide campaign to raise awareness   
• EU funding for financial literacy initiatives and research
• monitoring progress and assessing impact over time.

EU citizens have one of the highest savings rates in the world but often do not get the most out of their savings. With the right knowledge and skills, they can make sound financial decisions, budget better, avoid scams and fraud, save more efficiently and feel better equipped to invest for their future. 

Savings and investment accounts

Citizens also need simple and accessible investment opportunities. Savings and investment accounts (SIAs) are designed to provide them with an easy and user-friendly way to grow their wealth and achieve their personal financial goals.

SIAs are accounts provided by authorised financial services providers which enable retail investors to invest in capital markets. Thanks to tax incentives and simplified tax procedures, they’re an attractive option for citizens who want to invest. Through SIAs, citizens can achieve higher returns on their savings compared to keeping them in bank deposits and choose which financial products and economic sectors to invest in. By doing so, they also help finance EU businesses, driving economic growth and job creation across Europe.

SIAs already exist in some EU countries. The Commission is now recommending that all EU countries introduce them. SIAs should have these key features

• a variety of providers: a wide range of authorised financial services providers (banks, investment firms, neobrokers) to boost competition and innovation
• simplicity: simple, reliable and easily accessible user experience for retail investors (online and offline) to make the buying and selling of assets seamless
• flexibility: retail investors should be allowed to open multiple accounts with different providers, without excessive fees or cumbersome processes when transferring their portfolios
• broad investment opportunities: in various products such as shares, bonds and investment funds, allowing citizens to diversify their portfolios across asset classes, issuers, manufacturers, geographies and risk profiles
• tax incentives: well-targeted and simple to understand and apply
• simplified taxation process: streamlined tax procedures, including relying on SIA providers for tax declarations

The Commission will work closely with EU countries and stakeholders to implement these measures. Europe's citizens should feel confident managing their money and savings, have better access to investment opportunities and thrive financially.  

For more information

Press release

Questions and answers

Factsheet

Competitiveness