A report from think tank New Financial, in partnership with asset manager Fidelity International, has identified a potential €4.8 trillion opportunity to transform Europe’s financial landscape — by shifting savers out of cash and into long-term investments.
The study comes at a time when the European Commission is advancing its “Savings and Investments Union” agenda. At the heart of the initiative is a push to encourage EU households — which collectively held nearly €11 trillion in cash as of 2023 — to consider more productive investment options.
Despite historically low interest rates finally starting to shift, the report has found that savers across the EU remain heavily cash-reliant. According to the researchers, that inertia is a missed opportunity not just for individuals, but for Europe’s broader economic resilience and capital markets depth.
Drawing on best practices from 25 international frameworks, the report offers a 10-point blueprint for policymakers to design accessible, attractive savings and investment accounts.
Among the standout models is Sweden’s “ISK” account, which now holds assets equivalent to 29% of Sweden’s GDP — just ten years after its launch. Key to its success, the report noted, are simplicity, tax transparency and user flexibility.
“If similar accounts were adopted across the EU and saw take-up in line with the most successful accounts in the report’s sample, they could collectively attract between €1.5 trillion and €4.8 trillion in investment over the next decade,” stated the report.
The report has pointed out that long-term capital pools in the EU stand at just 239% of GDP — significantly below levels seen in the US or UK — and attributes this in part to the absence of consistent, user-friendly investment vehicles.
Lack of confidence prevents Europeans putting one-third of savings into markets
The proposed blueprint emphasised ease of use, tax incentives, high or no deposit ceilings and no penalty for withdrawals. It also advocated against geographic restrictions that limit savers to local markets.
The report recommended awareness campaigns to improve financial literacy, the introduction of junior investment accounts, and a commitment from policymakers to minimise future changes that could erode confidence.
Christian Staub, head of Emea and global client propositions at Fidelity International, said: “This report underscores the urgent need for innovative savings frameworks that empower individuals and strengthen Europe’s financial future. The findings show that with the right design -simple, flexible, and supported by smart tax incentives – savings accounts can become a powerful tool for both personal financial security and economic growth. We are proud to support this initiative and its call for bold, practical reforms that can deliver real impact across the EU.”
Maximilian Bierbaum, head of research at New Financial and lead author of the report, said: “Europeans are great savers, but not always great investors. Too much capital is sitting idle in cash, eroding in value and missing the opportunity to support long-term prosperity. This report shows that with the right policy tools, we can change that. The ISK in Sweden, the TFSA in Canada, and the ISA in the UK all demonstrate how well-designed accounts can shift behaviour at scale. Our blueprint offers a practical path forward for EU policymakers to unlock this potential.”
