The so-called Savings and Investment Union is expected to be the „central enabler“ for boosting Europe’s economic competitiveness – at least according to EU Commissioner Maria Albuquerque and her boss, Ursula von der Leyen, who are outdoing each other talking up the strategic initiative. But let’s be honest: Isn’t this a bit overblown? Even the EU Commission should have realised by now that its often exaggerated announcements do it no favours. Overpromising and underperforming – the EU authority is rightly being accused of once again promising too much and delivering too little.

In reality, the roadmap for revitalising European capital markets contains little that is truly new. Legislative initiatives to simplify securitisations have long been announced, as have measures to make it easier for insurers to invest in equities. And when it comes to the most critical aspects, the EU has limited powers anyway – such as tax incentives for retail investments, or harmonising insolvency rules. In these areas, it is left to merely issuing „recommendations“.

Essentially, only two announcements are genuinely new. First, the plan to further unify oversight of stock exchanges, clearinghouses, and central depositories – and potentially even extending EU-level supervision to large asset managers. Second, the proposal for a „28th regime“, allowing market participants to bypass obstacles arising from differences in corporate, tax, and labour law. However, both measures are bound to face strong political resistance.

So, is the Savings and Investment Union not even worth the paper it’s written on? Quite the opposite. With this roadmap, the Commission is accelerating overdue initiatives, such as the revision of Solvency rules. And accusations of half-heartedness miss the point. After all, they imply that the EU Commission lacks the courage to propose legislation that would genuinely advance the single financial market. Ironically, such criticism often comes from those who would be the first to complain if more ambitious initiatives—like the creation of a European Safe Asset—were put forward.

In short: The strategy paper is not a groundbreaking masterstroke. But it is a sensible step in the right direction.