Europe needs strong Savings and Investments Union – banks call for swift progress

The Association of German Banks welcomes the “Communication on Savings and Investments Union” unveiled in Brussels today. “The European Commission is sending an important signal which must now be backed up by decisive action. We need concrete steps to sustainably strengthen Europe’s banks and capital markets – and there is no time to lose,” Christian Sewing, President of the Association of German Banks, said.

Europe is under pressure: Urgent investment in defence, security, innovation and climate change mitigation will require the deployment of huge financial resources. Demographic changes are also placing a burden on social security systems. “We will not be able to accomplish these tasks without an efficient European capital market,” Sewing warned. “The capital is there – but it must finally be put to productive use. Otherwise, the investment will take place in other parts of the world.”

Europe must make the Savings and Investments Union efficient, competitive and open to innovation. The objectives proposed by the Commission, such as a reform of the securitisation market or the expansion of capital market-based pension provision, are therefore the right ones. “But what we now need is concrete measures to achieve these objectives. Europe must integrate its capital markets more closely, remove unnecessary hurdles and make investing easier,” said Sewing. “This is the only way we can mobilise the required investment and secure Europe’s future.”

And all stakeholders must play their part: Member states must take action at national and European level, make compromises and capitalise on the current momentum. “If Europe wants to survive in an increasingly multilateral world and remain a relevant financial hub, it must finally take major steps towards reform,” Sewing said.