Today, the Danish EU presidency secured a consensus between the EU member states on the Council’s position on the first package of proposals concerning the EU’s strategy for the creation of a Savings and Investment Union which aims to develop effective and integrated EU capital markets. The Savings and Investments Union aims to increase the possibilities for channeling the Europeans’ private savings to investments, increasing the financial opportunities for businesses and boosting EU economic competitiveness and growth as well as the possibility of higher returns for Europeans savings.
The agreed package addresses the framework for so-called “securitisation” in the EU – a process, through which banks can pool exposures such as loans and transform them into products, which then can be sold to investors, especially institutional investors such as pension funds, who are fit to manage the risks. The process makes it possible to mobilise capital in e.g. banks to new loans to firms and citizens. It contributes to the Savings and Investment Union’s goal of creating more financing opportunities for businesses, while at the same time ensuring due regard for financial stability, because the requirements are more closely aligned with the actual risks.
Stephanie Lose, Minister for Economic Affairs, says:
“I am very happy that the Danish EU presidency in a short time has been successful in reaching a consensus between the EU countries in the Council on the securitisation framework, which marks the first big step in the development of a Savings and Investments Union with effective capital markets in the EU, aimed at increasing competitiveness across European economies and strengthening growth in Europe. The Danish compromise proposal ensures a balance between supporting economic growth and safeguarding financial stability. This has been a central priority for the Danish EU presidency and the agreement is an important result. I look very much forward to the continued work on establishing a better framework for the mobilization of private capital in the EU to the benefit of citizens as well as businesses.”
Morten Bødskov, Minister for Industry, Business and Financial Affairs, says:
“Europe needs more money for investments. Draghi has made this very clear. Time is of the essence here. This is why Denmark has pushed for improving common rules on how banks can loan more money to businesses and citizens in Europe via so-called securitisations. Because we have to strengthen the banks opportunities to provide loans to future innovations and ideas, and thereby strengthen European competitiveness, create growth and more jobs.”
The Commission presented the package on securitisations on June 17, 2025, right before Denmark took over the EU presidency on July 1, and within a short time it has been possible to reach a consensus in the Council on a negotiating position, making it possible to enter negotiations with the European Parliament, when the Parliament has decided on its position.
The aim of the package is to remove unnecessary barriers for the application of and investments in securitisations. The package is meant to reduce administrative and operational burdens and includes targeted modifications of capital requirements, so they better reflect the actual risks. At the same time, the idea is to keep a sufficient level of investor protection and supervision as well as safeguarding financial stability.
Read more about the agreement on the Council of the EU’s webpage.
