Bratislava – Slovakia endorses the European Commission’s (EC) initiative to establish a union of savings and investments within the EU. This presents a historic opportunity to enhance Europe’s economic resilience, bolster competitiveness, and secure a prosperous future. This statement was made on Monday by Finance Minister Ladislav Kamenický (Smer-SD) during a conference on the subject, hosted in Bratislava by the National Bank of Slovakia (NBS), the Ministry of Finance (MF) of the Slovak Republic, and the European think tank Bruegel, as reported by TASR.
Kamenický emphasized that the global economy is navigating uncertain times, facing various challenges including trade wars and competitiveness issues. “In this context, the union of savings and investments represents a vital collaborative response from the European Union aimed at strengthening and enhancing the competitiveness of the EU,” he stated. He noted that an analysis by the Bruegel Institute from 2024 indicates that Europe has a considerable investment gap, estimated at 800 billion euros annually.
For Slovakia, as a small, export-driven economy, this situation presents both a challenge and an opportunity, according to the minister. “Our small and medium-sized enterprises, along with technology-driven sectors, particularly in the automotive industry and IT, require substantial financing for innovation and competitiveness. However, fragmented capital markets restrict access to private investments, as highlighted in the Bruegel analysis,” he elaborated.
The key challenge is to enable businesses to tap into pan-European funding sources, thereby reducing reliance on conventional bank financing. “By broadening access to non-bank financing, the union of savings and investments can foster a more dynamic, innovation-led economy across Europe,” Kamenický added.
He referred to the initiative supporting Slovakia’s capital market through retail government bonds valued at 500 million euros, launched by the MF in spring. Initially sold through selected banks, these bonds are currently tradable on the Bratislava Stock Exchange and are accessible to citizens across the EU.
“This initiative fulfills two essential objectives – diversifying state budget financing and enhancing financial literacy in Slovakia. By involving the public in future financing, we not only secure capital but also enable citizens to confidently engage in financial markets,” Kamenický explained.
He also stressed the importance of improving financial literacy as a foundational element for building trust in capital markets. “Slovakia is making notable progress in this regard. It is integrating financial education into school curricula and rolling out public programs to equip citizens with skills for effective financial management, responsible saving, and wise investing,” the minister noted.
In March of this year, the European Commission unveiled a new strategy for establishing a union of savings and investments, aimed at channeling savings into productive investments. This strategy seeks to enhance EU citizens’ participation in capital markets through expanded investment opportunities and improved financial literacy, thereby supporting their wealth and simultaneously reinforcing the EU economy. (June 9)
Leave a Reply