The European Commission announced two major plans today to help EU citizens get better at managing money and investing their savings, according to the statement. The package includes a Financial Literacy Strategy and a blueprint for new Savings and Investment Accounts across member states. Less than one-fifth of EU citizens have high financial literacy levels, according to 2023 Eurobarometer data. The initiatives aim to help people budget better, avoid scams, and invest more confidently for their future. These changes could transform how Europeans engage with capital markets and build wealth over time.
Financial literacy remains a big problem across the EU, with major differences between countries. Many citizens struggle with basic money management, leaving them vulnerable to fraud and poor investment choices. The EU wants to change this through better coordination, awareness campaigns, funding for research, and regular monitoring of progress. Europeans have some of the highest savings rates globally but often don’t get good returns on their money. Most people keep savings in low-interest bank accounts rather than investing in markets that could grow their wealth.
The Commission’s strategy rests on four main pillars: sharing best practices between countries, running EU-wide awareness campaigns, funding literacy programs, and tracking progress through surveys. The new Savings and Investment Accounts would let people invest in stocks, bonds, and funds through authorized providers including banks and online brokers. These accounts would come with tax breaks and simplified procedures to make investing more attractive. Account holders could diversify across different assets and geographies while keeping full control over their investment choices.
The SIA blueprint draws on successful programs already running in some EU countries but aims to create better, more uniform standards. Key features include multiple provider options, simple user interfaces, flexible account transfers, broad investment opportunities, and streamlined tax processes. The Commission believes these accounts will help citizens achieve higher returns while channeling money into the EU economy to drive growth and job creation. This connects individual financial goals with broader European competitiveness objectives.
