This is how Europe wants to control your savings: "idle money", strengthening investments, and digital euro
"Europe has everything it needs to take the lead in the competitiveness race. This month, the Commission will present the Union of Savings and Investment. We will convert private savings into the much-needed investment. And we will work with our institutional partners to get it started," commented the President of the European Union, Von der Leyen. Taking private savings and putting them in the hands of institutional partners smells like digital euro, as Christine Lagarde said.
In the speech of Commissioner Albuquerque at the Forum of the European Investment Bank (EIB): Investing in a more sustainable and secure Europe, he remarked: "If we look at the current situation of our European capital markets, it is painfully obvious that they are operating well below their potential. And this is detrimental to all Europeans. European savers find it difficult to get more out of their savings within the EU."
At the same time, he said, "a significant portion of your money is in low-yield deposit accounts or even in cash, and it will amount to 10 trillion euros by the end of 2023. Mobilizing even a small part of this amount can transform the investment landscape in the EU." In other words, they are trying to control where our savings and money should go. He added: "In Europe, there is a mismatch between the abundance of idle savings and the companies that need investment, including our European start-ups and scale-ups. This mismatch has been widely recognized, as has the challenge of the competitiveness of the European Union. Now there seems to be momentum for change."
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This approach, they commented, has been "reinforced by the reports of Enrico Letta and Mario Draghi, which highlight the critical importance of strong and integrated capital markets... The Union of Savings and Investment will focus on supporting household wealth creation by increasing the profitability of EU citizens' savings while expanding financing opportunities for companies. Essentially, the Union of Savings and Investment will create the conditions to channel savings into the most productive investments."
"Obviously, this does not mean that the Commission will decide where citizens' savings should go, but the Commission's goal is to make investing easier and more attractive." He himself realizes that after his Conference, he proposed monetary control and had to backtrack to clarify that they are not "going to decide where savings should go."