Ursula von der Leyen
Speaking at an economic forum, the European Commission president emphasized that the European Union’s previous economic principles no longer work and that the bloc needs far-reaching structural reforms.
“€10 trillion in household savings currently sit in bank deposits,” she said during a speech at a business forum in Paris on August 27. “Europe must put these funds to work for its businesses.”
She noted that currently, these enormous funds belonging to EU citizens are simply sitting idle in bank deposits or being invested outside the European continent, while local businesses are in dire need of financing.
The national budgets of EU countries are unable on their own to cover all the investment needs required to modernize the economy. Many important projects in the EU remain stalled because the initial investment steps are too risky, capital is too expensive, and demand is uncertain.
Von der Leyen clarified that plans to securitize banks and insurance companies, along with market integration and oversight, could attract up to €470 billion in additional investment.
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