How does the EC intend to foster participation in capital markets among citizens and develop the supplementary pension sector?

The EC aims to promote greater participation of retail savers in capital markets by drafting recommendations regarding savings and investment accounts based on existing best practices, which will also include recommendations on the corresponding tax treatment (third quarter of 2025).

A strategy related to financial education will also be published, striving to qualify citizens and increase their participation in capital markets (third quarter of 2025).

Additionally, the EC, along with the European Investment Bank group, the European Stability Mechanism and national promotional banks, among others, will explore how to increase opportunities for retail investors to access appropriate financial products that contribute to the funding of EU priorities.

On the other hand, the EC intends to develop the supplementary pension sector with the aim of providing financial security for an increasingly aging population and contributing to the development of capital markets. Specifically, the EC announces the following measures: (a) developing recommendations on best practices related to auto-enrolment, pension tracking systems, and pension dashboards (fourth quarter of 2025) and (b) reviewing existing legal frameworks for occupational pension funds and the pan-European individual pension product, with the aim of increasing participation in supplementary pensions and improving pension funds’ ability to invest in productive areas (fourth quarter of 2025).

What measures does the EC propose to promote investments in shares and other alternative assets, as well as facilitate access to funding for businesses?

The EC intends to promote investments in shares and certain types of alternative assets (such as venture capital, private equity, and infrastructure).

More specifically, the EC notifies the implementation of measures to encourage institutional investors to invest in shares, addressing to such effects the current regulatory barriers and clarifying the prudential treatment of such investments (fourth quarter of 2025).

Moreover, said institution is committed to developing a more dynamic investment environment, striving particularly to facilitate access to funding for innovative start-ups and scale-ups in the EU through venture capital and growth capital. To do so, it proposes, in principle, a review of the Regulation on European venture capital funds (third quarter of 2026).

In addition, the EC intends to align public financing instruments with the objectives of the Savings and Investments Union. In particular, it mentions the development of investment programmes, such as TechEU, with the participation of the European Investment Bank and the European Technology Champions 2.0 initiative to be launched by the European Investment Fund in 2026.

The EC is also concerned by the lack of appropriate options to go public for those investing in private companies. This has led to the statement that it will work to find alternatives, such as allowing the creation of intermittent multilateral trading platforms.

Regarding taxation, the EC notifies the implementation of different measures, including recommendations, to remove differences between Member States in the tax procedures applicable to cross-border investments (third quarter of 2026).

Lastly, the EC will review the regulatory framework regarding securitisation with the aim of promoting such channel to boost investments, as freeing up capital allows banks to grant more loans. More specifically, proposals will focus on simplifying due diligence and transparency requirements, as well as adjusting the prudential requirements applicable to banks and insurance companies (second quarter of 2025).

What measures does the EC propose for the promotion of the integration of trading and post-trading infrastructures and for the growth of the asset management sector?

In relation to the consolidation of trading and post-trading infrastructures, the EC has set as an objective the removal of obstacles in cross-border activities, updating the legislative framework to allow the use of new technologies, ensuring better-quality execution and price formation in EU trading venues, as well as reducing the administrative burden.

To do so, the EC announces the future publication of a package of legislative proposals that will review the standards applicable to central securities depositories, financial guarantees, settlement and the structure of the trading market (fourth quarter of 2025). However, prior to publishing said package, the EC worked to gather comments from the industry and other interested parties, reason why it launched, on 15 April, a public consultation on capital market integration discussing, mainly, such issues.

Furthermore, the EC is committed to creating a specific channel for market participants to report existing obstacles to the integration of the EU financial market. In fact, the EC announced the creation of such channel on 24 April. Finally, it is committed to deepening coercive measures to expedite the removal of said obstacles.

With regard to facilitating further development of the asset management sector, the EC acknowledges that, despite having a European framework that allows funds authorised in the EU to benefit from the passport and, therefore, to be freely distributed throughout the territory, there are still national barriers and divergent practices that hinder their marketing. This has led the EC to determine a future legislative proposal aimed at removing such obstacles (fourth quarter of 2025). It shall also take measures to reduce operational barriers affecting asset managers operating across borders.

Lastly, the EC also announces a possible review of the Directive on the exercise of shareholders’ rights (fourth quarter of 2026).

What measures does the EC propose for the promotion of a more efficient supervision of the single market?

The EC states that, although there is a single rulebook for the financial sector, national competent authorities (NCAs) generally apply it differently. Therefore, it is vital for the institution to achieve harmonised supervision, so as for all financial market operators to be treated equally, regardless of where they operate. To the institution’s belief, this is the only way to achieve an increase of confidence in the EU capital markets.

Consequently, in order to achieve said objective, the EC announces a review of the regime applicable to the European Supervisory Authorities (ESAs) with the goal of acquiring an appropriate balance between the strengthening of supervisory convergence tools and entrusting these Authorities with new tasks. In particular, it considers that such centralised supervision could be appropriate for market operators with a significant cross-border presence, new sectors or cross-border asset-management groups (fourth quarter of 2025). This also is one of the issues brought up in the public consultation recently launched, mentioned herein, on the integration of capital markets in the EU.

Additionally, ESAs and NCAs are requested to make more intensive use of existing supervisory convergence tools and implement the latter in line with the agenda for simplification.

What measures of this Strategy are related to the Banking Union?

The Strategy also touches on the integration of the banking sector. More specifically, the latter announces that it will strive to find an appropriate solution regarding crisis management and the establishment of a European deposit guarantee system.

How will the European Commission carry out follow-up work regarding the Strategy’s level of compliance?

The Communication highlights the urgency and need to reach a turning point that allows EU financial markets to effectively channel savings into investment, thereby boosting competitiveness and creating opportunities. To such effects, the EC will regularly assess its evolution and publish a mid-term review before the second quarter of 2027.