European households hold approximately €11 trillion in cash and bank deposits, representing about one-third of their total financial assets, often in accounts yielding returns that barely keep pace with inflation. The European Commission estimates the EU’s additional annual investment needs at €750 to €800 billion. Political agreement on the Retail Investment Strategy was reached in December 2025 and approved by member states in June 2026. At least five countries, including Germany, are nonetheless slowing its implementation by requesting reduced regulatory burdens. This situation undermines EU financial integration and perpetuates a funding gap to the detriment of EU companies, particularly SMEs, compared to their US counterparts.
Source: Read the original article
