The European Commission has issued a recommendation proposing the widespread adoption of individual “savings and investment accounts” (SIAs) in sectors it has already highlighted as strategic, including defence.

The Recommendation, titled “Increase the Availability of Savings and Investment Accounts (including in the security – defence industry, the green transition, etc.) with Simplified and Advantageous Tax Treatment”, urges EU member states to adopt such accounts, offering incentives through tax exemptions.

According to the Commission’s information material, SIAs are accounts that allow individuals to invest in financial instruments such as shares, bonds and mutual funds. They are offered by authorised financial service providers, including banks and online brokers, and often come with simplified tax compliance and tax benefits.. 

Importantly, SIAs differ from retirement or supplementary pension products, which restrict withdrawals until retirement. SIAs are designed to provide citizens with easier access to investments while enabling more flexible use of savings.

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If designed effectively, SIA frameworks could give citizens easier access to investment opportunities with more attractive returns, helping them build wealth more efficiently.

SIAs have already been introduced in several Member States, including Denmark, Estonia, Finland, France, Hungary, Italy, Latvia, Lithuania, Slovakia and Sweden, although specific features vary. Other EU countries have announced plans to introduce similar frameworks from 2026.

In an optimistic scenario, the Commission estimated that greater retail participation in capital markets could increase investment in EU assets by more than €1.2 trillion over ten years.This would give EU companies greater access to capital, expanding financing options to support growth and innovation.

Such funding could also benefit innovative SMEs and high-growth companies in need of equity financing, thereby supporting local economies and job creation.

Overall, the Commission argues that SIAs could strengthen EU competitiveness, while contributing to long-term prosperity for both individuals and the wider economy.

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