Taoiseach Micheál Martin has said Ireland is prepared to move forward with the European Union’s proposed Savings and Investment Union (SIU), despite government concerns over how a single EU supervisor might affect the country’s financial services sector. He made the remarks upon arriving at an informal EU summit in Limburg, Belgium, focused on boosting Europe’s economy and competitiveness.
The SIU aims to encourage a stronger investment culture across the 27 EU member states by offering more accessible retail investment products. Diplomats estimate that savers in the EU currently hold around €11 trillion in bank or savings accounts rather than investing in European companies. Experts say the lack of venture and risk capital has limited the EU’s ability to scale up tech firms and compete with the United States and China.
“Our position on the Savings and Investment Union is more positive now,” Martin said. “There are issues around the harmonisation of supervision, and from our perspective, we support a more harmonized approach. But we are largely in favour of securitisation.” He added that Ireland is willing to progress discussions because “the broader issue of European competitiveness is at stake.”
The Taoiseach highlighted the potential benefits of the SIU for Irish small and medium-sized enterprises (SMEs), particularly in terms of accessing venture capital. He noted that while Enterprise Ireland provides some support, many SMEs still rely on US venture capital, leaving a gap in domestic funding options.
Martin acknowledged concerns over a central EU supervisory authority but said there is room within the Commission’s proposals to balance regulation with growth. He also said Ireland is untroubled by the EU’s concept of enhanced cooperation, which allows groups of member states to advance policy areas even without full unanimity. “Ireland believes in a more competitive Europe, a more expanded single market, a deeper savings and investment union,” he said.
The Taoiseach expressed reservations about “European Preference,” a policy championed by France that would prioritise EU products in public spending. Martin said while self-reliance is important, protectionist approaches could conflict with Ireland’s global trade agreements.
Tánaiste and Minister for Finance Simon Harris is preparing a memo for the government outlining a roadmap for a new domestic savings and investment strategy. Harris said around €170 billion is currently held on deposit in Ireland, with one in five adults saving more than €120 per month. He argued that citizens should have better opportunities to earn returns on their savings.
The Banking & Payments Federation Ireland (BPFI) has called for the introduction of a domestic Savings and Investment Account (SIA) to channel more capital into productive investment and strengthen household financial resilience. The federation said international models, such as Sweden’s SIA system, show how long-term savings can be mobilised effectively, while current Irish tax rules, including a 33 percent capital gains tax, discourage investment.
BPFI chief executive Brian Hayes said a domestic SIA could give households a simple, tax-efficient way to invest for the long term while boosting funds available to Irish businesses and the European economy. The federation urged the Taoiseach to champion both domestic and EU-level initiatives ahead of Ireland’s EU Council Presidency later this year.
