Europe today faces a strategic imperative: mobilizing multiple sources of funding in an unstable geopolitical context. It suffers from a chronic investment deficit in several key sectors.
Among them, defense has become an increasingly important priority for member states, which are now seeking to define its financing methods.
Another major issue is investment in businesses, crucial for Europe's competitiveness and economic independence. The Draghi Report, published in August 2024, made a significant impact by quantifying the scale of the needs: 750 to 800 billion euros annually by 2030.
So, how can these needs be financed? While defense funding remains a sensitive and open topic, Europe is attempting to provide an initial response regarding investment in its business fabric. On March 18th, the Commission unveiled the European Union's strategy for savings and investments (SIU - Saving & Investments Union).
The real question is not so much about financing, but about the direction of savings.
It is about better channeling savings products to support priority sectors. The challenge is to take a decisive first step: making it easier to access financial markets and offering new products dedicated to business financing. With over 30 trillion euros in savings, Europe already has a considerable force to mobilize.
Thus, to address this need for optimized allocation, which is not new but is now more pressing, the Commission has defined four priority work areas to enhance the effectiveness of savings actors:
- Enable savers to more easily direct their savings toward financial market instruments.
- Strengthen access to savings for all businesses, particularly Small and Medium-Sized Enterprises (SMEs).
- Enable the development of cross-border savings offers by reducing regulatory obstacles, especially in asset management and fund distribution.
- Reallocate supervisory responsibilities at the European level so that all financial market players receive equal treatment.
The implementation of the SIU will rely on a set of legislative and non-legislative texts, developed at the European level or by the member states themselves.
From a practical perspective: what to expect in the coming years?
Even before the SIU, Europe had launched a key initiative: the securitization reform. This technique allows banks to sell assets (loans, receivables) to free up credit capacity—an essential lever for boosting economic financing. While securitization is progressing in the United States, it is declining in Europe, hindered by overly rigid regulation and high capital requirements (CRR3/CRD6). The European Commission has included this issue in the SIU priorities, with a simplification proposal expected soon: a first concrete step toward better mobilizing savings in Europe.
Beyond securitization, many ambitious avenues are on the table. The first step will therefore be to define the priorities, to avoid dispersing initiatives. In France, the AMF (Financial Markets Authority) has identified two priority issues that raise many questions:
1. Encouraging individual investment in the european economy
In France, the offer of savings products is still too little oriented toward financing businesses. But the question remains: which businesses should be targeted first, and through which vehicles? Should SMEs be favored? And if so, is access to financial markets truly appropriate? There is a need for reflection to rethink savings products, while considering another European priority: defense financing. How can these new products be aligned with those planned for this strategic sector? An additional challenge in an already complex landscape.
2. Strengthening european supervision
The current fragmentation of the banking and financial landscape in Europe complicates the creation of a true single market. How can we transition from a multi-supervised environment to more integrated regulation at the European level?
One lever identified is the consolidation of stock market supervision. Currently, regulation relies on a division of roles between national authorities (such as the AMF in France) and European authorities (ESMA - European Securities and Markets Authority). However, this division will need to evolve: a gradual transfer of certain supervisory responsibilities to ESMA is now on the European agenda.
This task is a priority. Without harmonization of supervision, the SIU cannot materialize. A good example of this challenge is the implementation of T+1, planned for October 2027 for all stock market transactions. This technical change requires perfect coordination between 34 central securities depositories and 14 clearing houses in Europe, all supervised locally. A similar challenge arises when discussing savings and investment products.
Numerous challenges to address and prioritize
These two priorities represent just the first approach to upcoming actions: during the consultation held in February 2025, the European Commission received no fewer than 241 responses, from both regulators and concerned institutions. These responses represent numerous potential priorities in the face of the many challenges emerging in this area:
- Improving market knowledge for private investors
- Facilitating access to financial markets for individuals
- Stimulating participation in financial markets through new savings products with the potential for launching European products
- Defining an appropriate tax treatment
- Facilitating the development of pension funds as savings products
- Rethinking relationships with supervisory authorities
The construction of a true European Union for savings and investment has only just begun. While the first steps have been taken, the next stages are likely to be decisive... and complex. For financial players, the ability to anticipate, adapt quickly, and implement new regulatory requirements will be a key factor for success.
Sopra Steria is fully committed to supporting institutions in this transformation. With our active monitoring and expertise, we assist our clients in building their regulatory roadmaps in alignment with their business and strategic challenges. As an engaged player, we actively participate in European working groups, such as Digital Europe, whose work—particularly the upcoming position paper—will help shape the major directions of tomorrow.
In the face of these European ambitions, Sopra Steria positions itself as a strategic and committed partner.