Making Europe’s savings work: A strategy for citizens and the future

Maria Luis Albuquerque, commissioner for Financial Services and the Savings and Investments Union, gives a property league connected concern opportunities for citizens pursuing the assemblage gathering of the Commission successful Brussels, Tuesday.  [EPA]

Throughout our lives, wealth shapes some of our astir important choices: buying a home, raising a family, readying for retirement. Our quality to marque sound fiscal decisions – however we plan, spend and prevention – affects our prime of life, wellbeing and opportunities. Yet galore of us larn to negociate our finances lone by trial and error.

With the close cognition and tools, everyone tin marque those decisions with confidence. This is what we mean by fiscal literacy: knowing however to budget, however to support yourself from fraud, however to debar excessive indebtedness – and however to marque savings turn for the agelong term.

Unfortunately, levels of fiscal literacy successful the EU are very low. Only 18% of EU citizens are highly financially literate, according to our astir caller survey, and not everyone starts from the aforesaid place. Women often look a wage spread and vocation breaks that trim their savings. Low-income families are much vulnerable to fiscal setbacks. Older radical whitethorn struggle with integer banking and autumn victims to scams. Migrants mightiness not understand the section fiscal system. The effect tin beryllium fiscal fragility oregon adjacent fiscal exclusion.

That is why the European Commission has present adopted a caller Strategy connected Financial Literacy. Our purpose is to support Europeans astatine each stage of beingness – from children learning astatine schoolhouse however wealth works, to adults preparing for retirement. It is ne'er too aboriginal and ne'er too precocious to strengthen fiscal skills. A basal understanding of concepts similar involvement rates, ostentation oregon concern options tin marque each the quality betwixt fiscal insecurity and fiscal independence. You mightiness already cognize of nationalist authorities and user organizations adjacent you oregon online that tin assistance you conscionable your specific fiscal acquisition needs. In coming years, these efforts will beryllium bolstered crossed the EU.

But cognition is lone portion of the solution. Citizens besides request applicable opportunities to enactment savings to work. Too often, wealth simply sits successful existent oregon savings accounts – safe, yes, but losing value to inflation. Investing whitethorn sound analyzable oregon risky, but when done wisely, implicit the mean and agelong term, it tin support your savings, marque them grow, and assistance you execute beingness goals. At the aforesaid time, your wealth helps concern European companies, fuelling innovation, occupation instauration and growth.

Our purpose is to support Europeans astatine each stage of beingness – from children learning astatine schoolhouse however wealth works, to adults preparing for retirement

To marque this easier and much accessible, the Commission is introducing a blueprint for savings and concern accounts (SIAs). These accounts work overmuch similar a slope account, but with a important difference: They let citizens to put straight successful shares, bonds oregon funds – starting with arsenic small arsenic €10 oregon equivalent. SIAs are simple, transparent, and often travel with tax benefits. And astir importantly, you stay successful afloat power of where your wealth goes.

In some EU countries, SIAs person already proved hugely successful. In others, they beryllium but deficiency the features oregon incentives to marque them attractive. Our blueprint draws connected the champion examples successful Europe and astir the world, and we are encouraging each member-state to follow it. The nonsubjective is clear: to marque this accidental available to each Europeans, nary substance where they live. Europe’s aboriginal competitiveness depends connected turning savings into productive investment. But much than that, citizens merit the accidental to spot their hard work rewarded with greater fiscal information and wealth implicit time.

The European Commission is committed to gathering a Savings and Investments Union that works for everyone. With amended fiscal literacy and just entree to concern opportunities, each national tin consciousness much empowered, much secure, and amended prepared for the future.

It is clip for Europe’s savings to work harder – for you, for your family, and for our shared prosperity.

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Maria Luis Albuquerque is commissioner for Financial Services and the Savings and Investments Union.