Policymakers and fund managers in Europe call for a shift in focus towards mobilising domestic private savings to bridge funding gaps, boost competitiveness, and accelerate climate and digital goals amidst longstanding structural challenges.
European leaders and investors are sharpening a familiar argument: the continent has enough private wealth to finance its own economic overhaul, but much of it remains parked in low-yield accounts rather than channelled into productive investment.
At Reuters Next in London on 16 June, policymakers and fund managers said the European Union should do far more to mobilise roughly €35 trillion in private savings if it wants to narrow the gap with the US and China. The central concern is not a shortage of money, but a shortage of movement, with capital sitting idle while Europe faces a long list of funding needs in infrastructure, clean energy, digital systems and industrial renewal.
The scale of the challenge has been laid out repeatedly in recent policy work. Enrico Letta, the former Italian prime minister, estimated last year that about €33 trillion in EU household savings are largely held in deposits, while hundreds of billions of euros continue to leave European markets for American investments each year. That pattern, as he and others have argued, leaves the bloc trying to compete globally while its domestic wealth generates little strategic value at home.
The investment shortfall is also becoming harder to ignore. The European Union is thought to face an annual funding gap of between €750 billion and €800 billion to meet its competitiveness, climate and digital goals, with some assessments putting the figure even higher. In that context, the debate over savings is increasingly being framed as a question of economic survival rather than financial housekeeping.
Brussels has already begun to rework the policy language. What was long known as the Capital Markets Union is now being recast as the Savings and Investments Union, a change that reflects a shift in emphasis from market harmonisation to household participation. The European Commission advanced that agenda in March 2025 with a plan aimed at steering €10 trillion of citizen deposits towards strategic investments, including EU funds, infrastructure and green bonds.
Officials and industry figures say the logic is straightforward: if Europeans are persuaded to move more of their wealth into investment products, the bloc could deepen its capital markets and reduce its reliance on foreign financing. But that will require more than slogans. According to Benoit Peloille, chief investment officer at Natixis Wealth Management, confidence and stability are crucial if private savers are to be convinced to support the continent’s transition.
The structural weaknesses are longstanding. Fragmentation across national markets has left European funds and pension vehicles far smaller, on average, than their US counterparts, raising costs and limiting scale. A stronger banking union and deeper capital markets union are widely seen as necessary if Europe is to channel savings efficiently and build larger, more competitive financial intermediaries.
The European Parliament’s economic and monetary affairs committee has echoed that view, warning in March 2025 that the banking union sits at a turning point with implications for Europe’s economic future over coming decades. Its report drew on the work of both Letta and Mario Draghi, who have argued that Europe needs a substantial reset if it is to keep pace with American and Chinese competitors.
Letta has also pushed for a broader rethink of the single market, including a “fifth freedom” for research, education and innovation, alongside a Savings and Investments Union designed to keep more capital within Europe. The underlying message from policymakers is becoming clearer: Europe does not lack savings, but it does lack the mechanisms, confidence and returns needed to put that capital to work.
- https://cryptobriefing.com/eu-private-savings-compete-globally/ – Please view link – unable to able to access data
- https://www.investing.com/news/economy-news/eu-must-tap-trillions-of-euros-in-private-savings-to-keep-up-with-us-and-china-investors-say-4745402 – At a Reuters Next event in London on June 16, 2026, investors and policymakers emphasised the need for the European Union to mobilise approximately €35 trillion in private savings to fund its economic transformation. They argued that Europe cannot compete with the US and China while its citizens’ wealth remains in low-yield bank deposits. Benoit Peloille, Chief Investment Officer at Natixis Wealth Management, stated that building confidence and stability is essential to redirect private savings into financing these transitions. ([investing.com](https://www.investing.com/news/economy-news/eu-must-tap-trillions-of-euros-in-private-savings-to-keep-up-with-us-and-china-investors-say-4745402?utm_source=openai))
- https://oeil.europarl.europa.eu/oeil/en/document-summary?id=1808256 – The European Parliament’s Committee on Economic and Monetary Affairs adopted a report on the Banking Union in March 2025. The report highlighted that the Union is at a turning point that will determine its economic future over the coming decades. It referenced reports from 2024 by Enrico Letta and Mario Draghi, which emphasised the need for a major turnaround to compete with the United States or China. The report also noted that a strengthened Banking Union would enable the EU to generate the necessary capital to make the European economy fit for the future. ([oeil.europarl.europa.eu](https://oeil.europarl.europa.eu/oeil/en/document-summary?id=1808256&utm_source=openai))
- https://www.euronews.com/business/2024/06/11/single-market-shake-up-a-fifth-freedom-for-the-eus-internal-trading-arrangements – In June 2024, former Italian Prime Minister Enrico Letta urged for a radical shake-up of the EU’s single market. He argued that the gap between the EU and the US is growing, and that the single market is in critical need of development to keep up with rivals such as the USA and China. Letta proposed the addition of a fifth freedom encompassing research, education, and innovation to the EU’s internal trading arrangements. ([euronews.com](https://www.euronews.com/business/2024/06/11/single-market-shake-up-a-fifth-freedom-for-the-eus-internal-trading-arrangements?utm_source=openai))
- https://www.intereconomics.eu/contents/year/2026/number/1/article/the-missing-foundations-of-eu-private-capital-mobilisation.html – This article examines how fragmentation affects private capital mobilisation in the EU and why progress on the banking union and the capital markets union is essential to complement national pension and savings reforms. It highlights that one of the most visible consequences of capital market fragmentation is the limited scale of European financial intermediaries. European investment funds and pension funds remain significantly smaller, on average, than their US counterparts, leading to higher operational, compliance, and distribution costs. ([intereconomics.eu](https://www.intereconomics.eu/contents/year/2026/number/1/article/the-missing-foundations-of-eu-private-capital-mobilisation.html?utm_source=openai))
- https://reports.insuranceeurope.eu/annual-report-2024-2025/s/89/mobilising-potential – In its Annual Report 2024-2025, Insurance Europe discusses the need to mobilise Europe’s strategic future. Enrico Letta, former Italian Prime Minister and President of the Jacques Delors Institute, argues that Europe is not short of capital but short of capital mobilisation. With over €33 trillion in private savings, the European Union holds immense financial potential. However, hundreds of billions of euros in European household savings flow abroad each year, primarily to the United States, undermining the EU’s ability to finance its own strategic priorities. ([reports.insuranceeurope.eu](https://reports.insuranceeurope.eu/annual-report-2024-2025/s/89/mobilising-potential?utm_source=openai))
- https://www.reif-eu.org/actualite/le-rapport-letta-sur-lavenir-du-marche-interieur-publie/ – In April 2024, Enrico Letta presented his report on the future of the single market to the European Council. The report explores avenues for the single market to respond to challenges facing the European Union. One of the proposals is the creation of a Savings and Investments Union to retain European savings on the continent. The report also advocates for a ‘right to stay’ for citizens, ensuring opportunities across all territories, and calls for a revamp of structural funds to benefit regions in decline and border areas. ([reif-eu.org](https://www.reif-eu.org/actualite/le-rapport-letta-sur-lavenir-du-marche-interieur-publie/?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on June 16, 2026, and references events from June 16, 2026, indicating recent reporting. However, similar discussions have been reported in previous years, such as in June 2025, which may suggest some recycled content. ([elpais.com](https://elpais.com/economia/2025-06-16/los-olvidados-informes-de-letta-y-draghi.html?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes from Benoit Peloille and references statements by Mario Draghi. While these individuals have made similar statements in the past, the specific quotes in this article appear to be recent. ([investing.com](https://www.investing.com/news/economy-news/eu-must-tap-trillions-of-euros-in-private-savings-to-keep-up-with-us-and-china-investors-say-4745402?utm_source=openai))
Source reliability
Score:
6
Notes:
The article originates from CryptoBriefing, a niche publication focusing on cryptocurrency and blockchain news. While it provides detailed information, its focus on cryptocurrency may limit its reach and influence compared to major news organisations.
Plausibility check
Score:
8
Notes:
The claims about Europe’s €35 trillion in private savings and the need to mobilise these funds to compete with the US and China are plausible and align with previous reports. ([cryptobriefing.com](https://cryptobriefing.com/eu-private-savings-compete-globally/?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents recent discussions on mobilising Europe’s private savings to compete globally. While the content is timely and plausible, the reliance on a niche publication and the lack of independent verification from major news organisations or primary sources raise concerns about the article’s credibility. Further verification from reputable sources is recommended before publication.