The President of the European Commission advocates
mobilizing the €10 trillion that households hold in bank deposits and proposes
advancing securitization, banking and insurance investment, and market
supervision.
In a recent speech, rejected by the vast majority of
Europeans, Von der Leyen described European savings deposited in banks as
“inactive” and pointed out that nearly €10 trillion of European households'
money currently remains in bank deposits. The President maintained that Europe
must put this capital “at the service of its businesses.”
The declaration is part of the Savings and Investment Union
strategy, promoted by the European Commission to try to transform more private
savings into investment within the European economy.
According to Brussels, around 70% of European household
savings, some €10 trillion, are deposited in banks as family savings. The
Commission believes that greater citizen participation in capital markets could
help finance businesses, innovation, infrastructure, and the energy transition.
The plan has generated debate because it represents a shift
in how Brussels views citizens' savings. Critics warn that there is increasing
political pressure for private savings to finance the needs of businesses and
the European economy.