OPINION: Enrico Letta, Former Italian Prime Minister/President of the Jacques Delors Institute
Europe is not short of capital. It is short of capital mobilisation. With over €33 trillion in private savings, the European Union holds immense financial potential. Yet each year, hundreds of billions of euros in European household savings flow abroad, primarily to the United States. This persistent outflow undermines the EU’s ability to finance its own strategic priorities, from innovation and infrastructure to the green transition and defence.
The proposed Savings and Investments Union (SIU) – which was at the core of the report (Much more than a market) on the future of the single market I presented to the European institutions – represents a structural response to this challenge. It offers a new framework for financial integration, replacing a decade of incomplete progress on the Capital Markets Union with a broader and more ambitious vision. The SIU is not just a financial initiative. It is a cornerstone for making Europe’s most important goals achievable. Without it, the Union will struggle to mobilise the resources needed for its future.
Today, savers across Europe face a fragmented landscape. National tax rules, consumer regulations and supervisory systems differ significantly. The result is limited choice, reduced competition, and inefficiencies that keep capital from flowing where it is needed. Insurers and other providers face high costs and regulatory uncertainty. These structural barriers help explain why such a large share of European savings ends up invested outside the EU. However, a more integrated environment can shift the dynamic.
In this regard, I welcome the strong signal already sent by the European Commission, in particular by President von der Leyen and Commissioner Albuquerque, who have rightly made this initiative a political priority and given it clear institutional momentum. The recent communication on the SIU is a timely and important step forward, confirming that the Union now recognises the strategic value of building a genuine European investment space.
In this transformation, the insurance sector must be recognised as a central player. Insurers are long-term institutional investors. They are well equipped to translate European savings into productive, resilient and sustainable investment. Their business model, which combines stability, foresight and trust, makes them natural partners in building a financial ecosystem that serves the public good. Among the key opportunities for institutional investors is the rising demand for long-term investment in strategic sectors, such as clean energy, advanced digital infrastructure and climate adaptation. These areas match well with the liability profiles of many insurance portfolios. However, challenges remain, especially when it comes to regulatory alignment and access to scalable investment platforms. Bridging this gap will be essential to unleash institutional capital at the volume and pace required. But to unlock this potential, the right enabling conditions must be in place.
This is not a technical fix. It is a strategic realignment. The SIU must become the financial backbone of Europe’s new strategic approach. That means creating the conditions to channel capital into long-term priorities such as climate resilience, digital infrastructure, defence capabilities and health innovation. In all of these fields, insurers have a critical role to play, offering both capital and expertise. To do so effectively, capital must move confidently and seamlessly across borders. For this reason, the SIU should also support the development of a more competitive and integrated asset management industry. Insurers, given their pan-European presence, risk expertise and established relationships with millions of policyholders, can help lead this effort. Their role is not just financial. It is strategic, and it is essential.
At the same time, Europe must look outward. The global context demands a stronger, more connected financial ecosystem. The SIU should not isolate Europe from its neighbours. On the contrary, it should promote structured cooperation with key financial centres such as London, Zurich and Oslo. In this wider framework, insurers can act as bridges. Their capacity to operate across jurisdictions, pool risk, and offer stability is an asset that Europe should fully embrace.
Moreover, the value insurers bring goes beyond investment. They innovate in risk modelling. They support adaptation to climate change through insurance coverage and prevention. They contribute to social cohesion by providing pensions, health coverage and protection products. In short, they help manage uncertainty and promote resilience. Their role in the SIU must reflect this wider societal contribution.
From Potential to Leadership
Ultimately, the SIU is about putting Europe’s financial strength to work for its future. It is about making sure that the wealth created by European citizens supports the public goods they care about: a sustainable environment, secure societies, modern infrastructure and shared prosperity. It is also about restoring confidence that the European project can deliver, not only in times of crisis but in shaping a long-term vision.
This opportunity must not be missed. The SIU can be a turning point for European integration, for competitiveness, and for trust. The longer Europe waits, the more capital will be lost, and the more difficult it will become to close the gap with global competitors. This is a moment for leadership.