Brussels, Belgium. Cyprus Securities and Exchange Commission Vice Chairman Panikkos Vakkou said Europe must dismantle structural barriers and leverage advanced technology to realise the potential of the Savings and Investment Union (SIU).
Call for structural reform
In an article originally featured in Eurofi magazine, Vakkou said that for the SIU to offer EU citizens broader access to capital markets and redirect savings into productive cross-border investments, the bloc must be clear about the factors hindering progress.
He said the issue is not a lack of capital but a financial system that is difficult to navigate across borders, pointing to market fragmentation, high distribution costs, uneven product access, and compliance burdens that discourage international business.
Role of technology and crypto-related innovation
Vakkou said technology and crypto-related innovation, including digital platforms, tokenisation, distributed ledger technology (DLT), and artificial intelligence, are essential to addressing systemic inefficiencies.
He said that when used effectively, these tools can help ensure saving and investing work smoothly in everyday practice while improving accessibility.
Regulation and innovation
Vakkou said the global discourse should move away from a binary choice between regulation and innovation, and instead focus on using technological breakthroughs to expand market participation without eroding public trust.
Household savings and access to markets
The article cited a gap in the economy, noting that European households hold more than €10 trillion in low-yield bank deposits.
Vakkou said households rarely access capital markets, aligning with European Central Bank findings on structural, cultural, and educational barriers that prevent capital from reaching the real economy.
Digital platforms as a potential solution
Vakkou said digital investment platforms could help by making long-term products easier to compare across borders and supporting sound investment habits through diversification.
What changes do you think would most help households access cross-border investment opportunities in the EU?
