The European Commission today has announced two important initiatives to progress the financial union and bring tangible benefits to all European citizens. These are European savings and investment accounts, which will be made accessible to everyone through an improvement in financial literacy at all ages and at all levels. The spread of these accounts – underlines Brussels – will also favor the financing of companies and the development of the European economy.
Low financial literacy in the EU
The global package focuses on the improvement of financial literacy, which aims to help citizens to make healthy financial decisions, ultimately improving their well -being, their financial safety and their independence. The basic idea is that, with the right combination of financial knowledge and skills, citizens can make a better balance, avoid scams and fraud, save more efficiently and feel better equipped to invest for their future.
According to Eurobarometer 2023, financial literacy levels are rather low in the EU: less than a fifth of citizens has a high level of financial literacy, with significant differences between the Member States. The strategy therefore includes measures aimed at strengthening the financial awareness of all citizens and to support the efforts of the Member States aimed at improving financial literacy.
Brussels’ strategy for alphabetization
The financial literacy strategy of the European Commission is based on four pillars: coordination between national authorities and adoption of the best practices, communication and awareness campaigns, funding for financial literacy initiatives, monitoring of the progress made and evaluation of impacts.
European citizens – recalls the Commission – have one of the highest savings rates in the world, but often do not get the most from their savings. The financial literacy strategy will sensitize citizens on how to plan and better use their savings and how to understand the risks and opportunities for investment.
How the new savings and investment will be
In addition to knowledge, citizens also need simple and accessible investment opportunities. To this end, today’s package also includes a plan for savings and investment accounts (SIA). These are accounts provided by banks and other authorized financial services providers, including online, which allow small investors to invest in capital market tools. These accounts are often equipped with tax incentives and simplified tax procedures, which makes them interesting for citizens.
European savings and investment accounts will have to guarantee higher yields on savings, compared to the maintenance of bank deposits, all while maintaining full control on which financial products or economic sectors to invest. While investments involve risks, these can be managed through diversification and a long -term investment approach.
European storage and investment accounts will therefore have to have some fundamental characteristics: to be offered by a wide range of suppliers (banks, investment companies, neo-broker), be simple and easily accessible, guarantee flexibility, facilitating the opening of multiple accounts also with different suppliers and without excessive commissions or complicated procedures. Furthermore, European storage and investment accounts should offer large investment opportunities (shares, bonds and investment funds), allowing citizens to diversify their wallets between activities of activities, issuers, geographical areas, risk profiles, while excluding highly risky or complex products. Finally, the accounts in question will have to offer well -targeted and simple tax incentives to understand and apply, and a simplified taxation process.
