Financial literacy and capital markets to unlock Europe's wealth

The European Economic and Social Committee (EESC) has adopted two complementary opinions in plenary that lay the groundwork for a more prosperous, resilient and financially empowered Europe. By supporting the Commission’s strategy for a Savings and Investments Union (SIU) and calling for a comprehensive push to improve financial literacy across the EU, the EESC is highlighting the need to combine more integrated financial markets with citizen empowerment. Together, these twin efforts aim to unlock untapped capital for investment, deepen the Single Market and enable all Europeans to benefit from informed financial choices.

One opinion focuses on the Commission’s communication on “A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU”. It champions the idea of a Savings and Investments Union, one step in the long-promised, but slow-moving, development of a Capital Markets Union (CMU). Spearheaded by rapporteur Petru Sorin Dandea, the opinion calls for deeper market integration, better supervision, and more accessible financial products for the public.

The idea is simple: Europe is sitting on more than EUR 10 trillion in dormant bank deposits. With the right tools, part of this wealth could be channelled into investments that support businesses, innovation and infrastructure.

The EESC supports the Commission initiative, while stressing the need to focus on equity, a stronger European Securities and Markets Authority (ESMA), more harmonised tax and insolvency rules, and investment products that are safe, transparent and cost-effective.

Why Financial Literacy is the missing link

A second opinion, prepared by rapporteur Giuseppe Guerini, focuses on financial literacy and why it is essential to making the SIU work.

According to a Eurobarometer survey, just 18% of Europeans demonstrate high financial literacy, with significant gaps between countries and social groups. This limits people’s ability to manage their money, avoid scams, and plan for the future, especially in a digital world full of complex financial products and online influencers.

The EESC views financial education as a social right, not a luxury. It recommends:

• Financial education from an early age, and its inclusion in school curricula
• Supporting adult education through targeted public and civil society initiatives
• Reaching people outside formal education, such as vulnerable groups, young people, the elderly, and new entrepreneurs.

Empowering citizens to understand how financial systems work is critical to building trust and encouraging meaningful participation. Without this, even the best-designed financial reforms may fail to deliver.

Connecting policy with people

As the EESC makes clear, retail investor participation must be built on trust and understanding. People will not invest simply because they are told to: they need to understand what they are investing in, and why it matters.

This is especially urgent with the rise of online financial influencers (“finfluencers”) and AI-driven scams. People, especially young people, need tools to separate trustworthy advice from misleading content. The EESC calls for a clear regulatory framework to keep pace with digital finance, and for coordinated action against financial fraud.

Financial literacy is also key to navigating future challenges like retirement and long-term care, especially as public welfare systems come under pressure. While private pensions and insurance may grow in importance, the EESC insists that public pension systems must remain the backbone of social protection.

Making finance fair and inclusive

Better financial literacy is not just a tool for growth: it is a path to social inclusion. The EESC believes such literacy can help reduce inequality, support women’s economic independence, and empower groups often left behind, such as migrants, rural residents and those with limited formal education.

At the same time, the EESC wants to ensure the success of the Savings and Investments Union by measuring progress. It recommends setting Key Performance Indicators (KPIs), such as increased retail investment, reduced transaction costs, and more harmonised national laws, and it urges the Commission to create a clear dashboard to track them.

A call for coordinated action

The EESC’s message is clear: a Europe that saves and invests must also educate and include. Without financial literacy, there is no financial inclusion. And without financial inclusion, the SIU risks becoming a project for experts, not for the public in general.

To avoid repeating the setbacks experienced with the CMU and the Banking Union, the EESC urges the Commission, Parliament and Member States to act together with fresh political will.

Europe has what it takes – resources, talent and the right institutions – to lead in sustainable, people-centred finance. But real progress means investing not just in capital, but in people themselves.