EU Commission consults on Savings and Investment accounts

What's new?

On 10 June 2025, the European Commission published a Call for Evidence (CfE).

This seeks feedback to help the Commission develop a recommendation on establishing savings and investment accounts aimed at facilitating the participation of retail investors in the EU's capital markets.

Respondents are asked for their views on the potential advantages and disadvantages of characteristics such as:

• the possibility of accessing a wide range of products through the account

• the eligibility of products that could be accessed via such an account

• easy access to the account and to investments - including via digital means

• easy and affordable portability of the account to other providers

• pre-conditions and limitations on the ability to provide savings and investments accounts to residents in other Member States in order to foster competition and pan-European investments

• tax simplification and tax advantages to be granted to the accounts and

• any other incentives to open a savings and investments account.

The CfE is open for 4 weeks, closing on 08 July 2025.

The Commission will then consider responses and expects adopt a (non-binding) recommendation to Member States in Q3 2025.

What's the background to the CfE?

The EU's Savings and Investments Union (SIU) initiative aims to help leverage private savings in the EU to invest in innovation and other key priorities of the EU and to identify innovative solutions for a coherent tax framework for the EU's financial sector.

The Draghi report of September 2024 flagged up an urgent need to act to better link up savings with investment opportunities to create real economic impact. There is, in particular, a savings and investment mismatch in the EU - citizens' savings are being held overwhelmingly in low-yielding deposits, while innovative companies are struggling with inadequate financing options.

Increased retail investor participation in capital markets could help support the depth and liquidity of the EU's capital markets while increasing the supply of private capital to EU companies.

In its March 2025 Communication (the Communication), the Commission set out its strategy on the SIU, announcing measures to create a European blueprint for savings and investments accounts or products based on existing best practices.

For our summary of the Communication, see here.

What is the Commission's aim?

The Commission is now planning to develop a Recommendation on establishing savings and investment accounts, to facilitate the participation of retail investors in the EU's capital markets. This would at the same time enhance long-term returns on retail savings and contribute to greater liquidity within the EU's capital markets.

Some Member States  already have savings and investments accounts and these have demonstrated that they can act as a gateway for retail access to a wide set of investment opportunities that suit both their long term and shorter term needs.

The Communication highlights that such accounts should be based on best practices, noting that the most successful are those which

• are easy to use

• are designed with a digital interface

• give access to a wide range of investment products

• offer preferential tax treatment and/or simplified tax compliance and

• allow a change of provider for no or low cost.

Portability of investments at minimum-cost across accounts in the same jurisdiction could increase competition and incentivise the provision of lower custody and transaction fees.

More generally, competition could help improve the overall offer and outcomes for retail customers, both in terms of width of choices and of costs - this would incentivise customers to participate in capital markets while strengthening the EU's financial services single market.

In addition, a review of international best practice indicates that take up of accounts is strongly boosted where the accounts are easily accessible with simplified tax procedures that reduce the actual and perceived regulatory burden for retail investors.