EU's push to launch own ISA model faces political challenges despite market support

Investment capital in need

Industry leaders and lawyers have raised issues with regulatory and jurisdictional challenges in implementing the EU’s Savings and Investments Union (SIU), a strategy launched by the European Commission to turn household savings into market investments.

SIU came in response to a lack of capital needed for the bloc's strategic objectives, including spending more money on defence, climate change and responding to the "rapid technological shifts and new geopolitical dynamics". According to the Commission's estimates cited in last year's Draghi report, the EU needs an additional €750bn to €800bn per year in investments by 2030, or between 4.4% and 4.7% of the EU GDP in 2023. Investors flock to European ETFs as rotation away from the US continues This exceeds the proportion made under the Marshall Plan from 1948 to 1951, which accounte...