European Savings & Investments Union: ESMA Chair Calls for Integrated Capital Markets

Verena Ross, Chair of the European Securities and Markets Authority (ESMA), discussed the persistent fragmentation of Europe’s capital markets in a Euronews Business interview conducted as she prepares to leave the post in October 2026. She identified the split into “27 national markets” as a core obstacle to creating a single, deep European market that can match the scale and liquidity of the United States.

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The long-standing Capital Markets Union (CMU) was recently rebranded as the Savings and Investments Union (SIU). The initiative seeks to deepen Europe’s financial markets, reduce reliance on bank-driven financing, and give savers cross-border investment opportunities. Ross described the SIU as the vehicle for turning Europe’s extensive household savings into productive capital for companies.

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Verena Ross has served at ESMA since its creation in 2011, first as Executive Director and then as Chair from 2021. In her role, she oversees EU-wide investor-protection policies and the implementation of the SIU. The interview was conducted by journalist Angela Barnes for Euronews Business’s “The Big Question” series.

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Despite EU integration, Europe still operates “more often 27 national markets than really a single European capital market,” limiting the free flow of capital across borders.

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Ross emphasized that a large share of European financing still comes from bank credit, exposing firms to tightening lending conditions. A diversified funding source—linking household savings to corporate equity and debt—would create a “win-win situation” for both investors and businesses. Moreover, a unified market would make Europe more attractive to overseas investors from the United States, Asia and elsewhere, bolstering the continent’s global competitiveness.

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Ross called for “capital to flow as freely as people can within the European Union” and stressed the need for clearer, more accessible information to help citizens understand investment risks, costs and opportunities. She warned that while AI tools can aid investors, they also pose “certain biases” and may deliver inaccurate advice, underscoring the importance of not trusting such tools blindly. Ross expressed confidence that her successor could advance the SIU’s goals and move Europe toward a deeper, more liquid market.

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The interview highlighted two principal concerns. First, European investors are “slightly less financially literate,” a gap not due to lack of intelligence but to limited exposure to investment-required pension structures. Second, reliance on “fin-influencers” and AI-driven advice introduces risks of misinformation and biased recommendations, which could undermine investor confidence.

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• “We still have, as you say, more often 27 national markets than really a single European capital market,” — Verena Ross, ESMA Chair

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• “Capital needs to flow as freely as people can within the European Union,” — Verena Ross, ESMA Chair

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• “At the moment in Europe, still a large proportion of the financing comes through bank credit. But what we need to develop is a more diversified funding source… And in a way, it's a win-win situation when you can bring that together, these savings and the productive investments that they can sponsor,” — Verena Ross, ESMA Chair

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• “AI tools, I think, have a real role to play, but they provide both opportunities and they add risks,” — Verena Ross, ESMA Chair

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• “I really hope in 10-15 years, we have a European capital market, that is deep and liquid, that provides the investment opportunities for investors to invest in European companies, and makes sure that the capital markets are there to support the European economy and its positioning and competitiveness in the world,” — Verena Ross, ESMA Chair

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Ross’s tenure ends in October 2026; a successor will inherit the task of advancing the SIU and reducing market fragmentation. She envisions a deep, liquid European capital market within the next decade-plus, contingent on overcoming the structural barriers identified in the interview.

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