Live

Building Financial Confidence Across Europe

On 30 September 2025, the European Commission unveiled a new strategy to help citizens make smarter financial decisions and strengthen their economic independence. The plan introduces two main initiatives: the development of a Savings and Investment Union and the launch of Savings and Investment Accounts (SIAs)—a tool meant to make investing easier and more accessible to everyone across the EU.

It’s an ambitious vision. Yet, according to a 2023 Eurobarometer survey, fewer than 20% of Europeans have a strong understanding of basic financial concepts. The gap between member states remains wide, showing that this is not just a matter of awareness campaigns—it’s a systemic challenge.

The Knowledge Gap—and Why It Matters

Low financial literacy isn’t only about making poor investment choices. It’s also a growing risk of social exclusion. The cost-of-living crisis and the COVID-19 pandemic exposed how fragile many household budgets are: 16% of EU citizens have no emergency savings, and only 18% could cover basic needs for more than three months without income.

This makes financial resilience a key EU priority. But can education alone close the gap? Even the most informed consumer struggles to navigate aggressive market practices, fraud risks, and unequal access to financial services.

A Step in the Right Direction: EU Competence Frameworks

Financial education isn’t a new topic in the EU. It was already highlighted in the 2020 Capital Markets Union Action Plan, leading to the creation of EU-OECD financial competence frameworks—one for adults and one for young people. These guidelines help countries design better policies and measure their impact.

However, since implementation is voluntary, progress remains uneven. Without common standards or accountability, improvements in financial literacy may remain fragmented across member states.

Savings and Investment Accounts: A New Tool with Old Risks?

The second major element of the strategy—the Savings and Investment Accounts (SIAs)—aims to make investing simpler and more transparent. The idea sounds promising: a single, easy-to-use product that helps citizens grow their savings.

But history offers cautionary tales. In some countries, “simplified” investment schemes have led to excessive risk for consumers, especially those who didn’t fully understand market dynamics. The question now is whether SIAs will provide enough protection for inexperienced users, or whether they’ll end up shifting risk from financial institutions to ordinary citizens.

Bridging the Generational and Social Divide

Two groups are especially vulnerable to financial insecurity: young people and low-income households. They are hit hardest by inflation, job instability, and limited access to quality financial advice. While the EU’s strategy acknowledges these challenges, reaching these audiences effectively remains difficult.

Educational campaigns often target the general public, overlooking the fact that a student, a young worker, or a parent nearing retirement each need tailored guidance. Likewise, families with low incomes require practical tools and accessible advice—not just theory.

Education Isn’t Enough: Protecting Consumers Matters Too

The European Commission rightly stresses that education must go hand in hand with fair regulations, transparent markets, and strong consumer protection. Teaching people about finance won’t help much if financial institutions continue to exploit information asymmetry or offer complex, high-risk products.

From the 2008 mortgage crisis to more recent investment scandals, past experience shows that consumers often bear the costs of systemic failures. Without stronger regulation and enforcement, the EU’s education efforts risk becoming little more than a well-intentioned façade.

Dialogue and Cooperation—Turning Words into Action

The Commission’s plan also emphasizes dialogue between EU institutions, member states, and market stakeholders. Events such as the joint conference with Belgium’s FSMA in February 2024 aim to promote the exchange of best practices in financial education and inclusion.

While such forums are valuable, conferences alone won’t fix the problem. Real progress requires structural solutions—like expanding access to free financial counseling and creating EU-wide standards for transparent, low-risk investment products.

Towards a Financially Savvy Europe

The EU’s financial education strategy brings together important ideas: better education, smarter tools, and closer cooperation among member states. But the real challenge lies in translating policy into impact.

Unless Europe also tackles income inequality, low trust in financial institutions, and weak consumer protection, even the best educational programs may fall short.

Creating a financially literate Europe is not just about teaching people how to save or invest—it’s about building a system where every citizen can participate confidently and safely in the economy.

Written by

Shape the conversation

Do you have anything to add to this story? Any ideas for interviews or angles we should explore? Let us know if you’d like to write a follow-up, a counterpoint, or share a similar story.

Write a counterargument article Write a related article