Brussels, Belgium. Cyprus will assume the EU Council Presidency “at a defining moment for Europe”, CySEC chairman George Theocharides said, arguing that deeper capital markets are central to Europe’s strategic autonomy and long-term competitiveness.
Speech at Bloomberg EU Policy Series
Speaking at the Bloomberg EU Policy Series event, held in the context of the upcoming presidency, Theocharides said the motto “An autonomous Union, open to the world” reflects current geopolitical and technological pressures. He added that Europe “must be competitive enough to lead, autonomous enough to protect its interests and innovative enough to shape the future”.
He described the financial sector as the “engine” of that transformation.
Capital markets fragmentation and Commission proposals
Theocharides referred to the Savings and Investment Union and the Commission’s market integration and supervision package, pointing to a structural weakness dating back to the first Capital Markets Union debate in 2014-2015: the persistent fragmentation of European capital markets.
He said legal, supervisory and operational barriers, and sometimes cultural ones, still complicate cross-border investment across the bloc, raising the cost of capital, limiting innovative firms and pushing businesses to seek financing outside the EU. He added that savers face limited options and uneven protection depending on where they live.
Against that backdrop, he said the Commission’s proposals aim to create a more efficient, competitive and resilient financial ecosystem.
Strategic autonomy and private savings
On strategic autonomy, Theocharides said capital-market depth is essential, as a deeper and more liquid European market reduces dependence on external funding sources and bank lending, strengthening financial sovereignty without isolating Europe internationally.
He also referred to Europe’s private savings, estimated at €14 trillion, describing them as the Union’s largest untapped resource. He said a significant share remains in low-yield deposits which, under inflation and demographic pressure, does not provide a sustainable model for wealth creation or pensions.
He said the Savings and Investment Union, combined with pension, insolvency and market-access reforms, would allow part of these funds to move into productive investment and help close financing gaps linked to the green, digital and defence transitions.
How do you think deeper and more integrated EU capital markets would affect savers where you live?
