Von der Leyen: €300 billion in European savings flown overseas every year, primarily to the US, will be invested in Europe from now on. All 27 EU states agreed to establish the S&I Union, a step toward the full Capital Market Union

[u/paneuropeanism_]

https://streamable.com/4h43qk

[u/Pheanturim]

It won't be voluntary, it'll work a bit like the UK savings and stock accounts which allow a certain amount of cash to be saved but others invested into UK stocks. There will be legislation around it which will force banks to use money in European savings accounts to invest in European companies. At least that's what I'd imagine

[u/Knee-Awkward → u/Pheanturim]

I live in the UK and as far as I am aware, such limitations on restricting some investment only to the UK are still only just rumours and discussions and not a real law. But even here the opinions on implementing such a law are mixed. People dont want to be forced to invest their savings into a worse asset just because its british

[u/njuffstrunk → u/Knee-Awkward]

Right exactly in essence this comes down to some form of capital control and a lot of people are ideologically opposed to this. Not to mention the lobbying power of financial sector.

[u/Pas__ → u/njuffstrunk]

there's already a lot of capital control, the proposal is to adjust those to be less of a fragmented per country mess.

if EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to €8 trillion could be redirected into long-term, market-based investments – or a flow of around €350 billion annually.

https://www.ecb.europa.eu/press/key/date/2024/html/ecb.sp241122~fb84170883.en.html

[u/GergDanger → u/Pheanturim]

The U.K. thing you said isn’t true. I can invest into any company I want through my stocks and shares ISA up to £20k a year.

[u/niteninja1 → u/GergDanger]

it was a proposal by reeves and its indefinitely delayed

[u/Ok-Style-9734 → u/Pheanturim]

Which acounts fo you think force you to invest in uk companies?

The ISA changes were just about interest on cash in a stocks and shares isa no rules about it having to be in the uk.

[u/Diligent-Bowler-1898 → u/Pheanturim]

That along with presenting a more competitive shared capital market hopefully. We need our own Brussel Street, hopefully UK can get included somehow, they have a lot of expertise in the area and good companies to invest in.

[u/Aggressive_Chuck → u/Pheanturim]

This sounds like a massive misallocation of capital.

[u/propercare → u/Pheanturim]

AFIK there is no problem with funding of EU companies but their competitiveness on global markets. The whole idea that was now promoted looks like a political bluff.

[u/fuscator → u/Pheanturim]

This doesn't exist in the UK as far as I know, and I hope it never does.

[u/Pheanturim → u/fuscator]

I misremembered something that was suggested I think around the last budget. However the point stands to enforce this you'd need legislation

[u/niteninja1 → u/Pheanturim]

that basically got scrapped