Investors Urge EU to Unlock €35 Trillion in Savings as US Holds 55% of Unicorns

3 articles · Updated · Reuters · Jun 16

€35 trillion in private savings could fund Europe’s economic transformation, investors and policymakers said, arguing the EU must redirect cash from low-risk assets to stay competitive with the United States and China.
Benoit Peloille of Natixis said that shift will require more confidence and stability, while Zurich’s Alison Martin pointed to deregulation moves and new savings and investment accounts as encouraging signs.
Mario Draghi had warned in 2024 that Europe faced a “slow agony” without faster decisions, coordinated industrial policy and massive investment, and speakers said the next six months will test whether policymakers act.
55% of the world’s unicorns are in the U.S., underscoring Europe’s gap in capital raising, while GXO’s Nizar Trigui said the bloc also lags on energy costs, labor flexibility and AI deployment.
Nadia Calviño said the EU is on the right track but must “go bigger and faster,” even as the European Investment Bank’s tech initiative has helped create a dozen unicorns since 2023.

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With €35 trillion in savings, why does Europe's capital continue to fuel its American tech rivals?

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Mobilizing €35 Trillion: The SIU’s Mission to Channel European Household Savings into Innovation and Growth

Overview

Europe faces a critical challenge: despite holding vast household savings, these funds are not effectively channeled into innovative businesses and high-impact projects. Many European households prefer to keep their savings in low-yielding bank accounts rather than investing in capital markets, which limits economic growth. For example, Irish households alone have over €165 billion in such accounts, and even a small shift could unlock billions for investment. This situation is made worse by low financial literacy across the EU. As a result, initiatives like the Savings and Investments Union (SIU) have been created to address these issues and unlock Europe's economic potential.

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