Communication on a Savings and Investments Union

Key points

The EESC:

• welcomes the Commission’s Communication on a Savings and Investment Union (SIU);
• believes that the success of the SIU relies on setting clear objectives towards genuine, tangible benefits for EU citizens and businesses and funding the real economy, as well as promoting a fair transition, delivering a fair distribution of costs, returns and risks, and safeguarding financial market stability;
• notes that fragmentation is one of the key impediments to the efficient flow of capital. In this regard, it welcomes the focus on enhancing the interoperability, interconnection and efficiency of EU trading and post-trading infrastructure, and notes that integrated markets also require integrated supervision;
• recommends direct supervision by ESMA for operators of major cross-border financial infrastructures, and proposes to strengthen accordingly ESMA's competences and capacities, as well as its resources;
• suggests that efforts concentrate on equity funding, to encourage SMEs to diversify their sources of funding, ultimately enabling risk-taking and innovation, and allowing investors to participate in value creation. In addition, equity markets should be strengthened by further harmonisation of the relevant company, insolvency and tax laws;
• highlights the need to reverse the ‘brain drain’ of highly-skilled, innovative researchers and entrepreneurs by offering compelling incentives for entrepreneurs and employees to stay and work in Europe;
• believes that it is necessary to encourage EU savers to become retail investors. Investors should have access to the widest possible range of safe, cost-effective, transparent and well-performing investment options. An open, vibrant and competitive market for cross-border investment services, including affordable, high-quality investment advice, is a prerequisite;
• calls the European Commission to define and publish a key performance indicators dashboard to monitor the progress of the SIU.

The EESC Youth Test was applied to this opinion. ESDN Youth was chosen by a group of interested youth organisations to represent all of them during the opinion-making process.