At the heart of the current financial policy debate is the question of how private capital can be mobilised more efficiently to drive economic transformation. Looking at Europe, representatives from the financial sector emphasise the urgency of structural reforms to ensure long-term competitiveness, resilience, and prosperity. In this context, the activation of the large amount of private savings held dormant in Europe is identified as a key area of action.

More than 3 trillion euros sit in savings and current accounts in Germany alone – an enormous potential that has so far been hardly productively utilised. „Building up more capital within Europe – particularly within the region itself – would be beneficial for all parties involved“, says Souâd Benkredda, Head of Capital Markets at DZ Bank. The necessity to channel these funds into higher-yielding and growth-promoting avenues is widely shared, considering demographic challenges, investment needs for climate protection, digitalization, security, and international competitive dynamics.

It’s about more than just financing. It also involves inclusion and participation. It is about broad participation in economic progress, especially through capital investments and pension schemes, emphasizes Stephan Leithner (Deutsche Börse Group). The discussion about new models of retirement provision – for instance, equity-based pension systems – is thus not only a financial but also a socio-political issue.

However, many voices warn that Europe – despite positive initiatives like the planned Savings and Investment Union – is lagging behind in building efficient capital markets. „The child now has a new name, but it is nothing other than the Capital Markets Union“, comments Lutz Diederichs (BNP Paribas Germany). As long as unanimity remains the rule in the EU, a real breakthrough is difficult – there is a fundamental „governance problem.“ Matthias Voelkel (Börse Stuttgart Group) also warns against waiting for Brussels: „Germany cannot wait for the completion of the Capital Markets Union – we have to act nationally as well.“

Hence, national scope for action is coming more into focus. The call: reduce bureaucracy, create tax incentives, strengthen digital infrastructure. Without a functioning capital market, the 2030 Agenda cannot be realised. Examples of successful capital market cultures – such as Sweden – show that European solutions can work. There, private participation in capital markets is significantly higher, and IPOs are flourishing. „Sweden has progressed even without the Capital Markets Union – we first need to start at home“, urges Leithner.

Furthermore, attention is drawn to Europe’s inherent vulnerabilities in future markets – such as in cryptocurrencies, digital euro, or defense-relevant industries. The development of an independent European financial center, for example in Frankfurt, is indispensable. The US dominates fields like crypto infrastructure and private capital formation. Europe must catch up here to secure sovereignty and strategic capacity for action.

There is agreement that mobilising private capital must not be viewed in isolation as a purely financial-technical measure. It is linked to a mindset that requires courage for implementation, trust in market mechanisms, and openness to new forms of industrialisation and capital participation. „We need a strong financial centre – that is one of the three pillars of transformation alongside public and private money“, emphasises Eddy Henning (ING Germany). And Diederichs demands: Germany must market itself better – especially through legal certainty, predictability, and a convincing economic narrative.