EU label for financial products: New impulses for investments and pensions!

EU label for financial products: New impulses for investments and pensions!

The European Union faces the challenge of preparing for global issues such as geopolitical tensions, climate change and digitalization. A central goal is to create efficient capital markets and promote higher investments. In this context, several Member States are planning a label for financial products to mobilize private capital. The General Association of the German Insurance Industry (GDV) and European partner associations actively support this initiative. Jörg Asmussen, General Manager of GDV, emphasizes how important this project is for investments and pension provision in Europe.

The proposed EU label belongs to the “Savings and Investments Union” (SIU) and represents a further development of the Capital Markets Union. The aim of this label is to identify financial products that contribute to the financing of European projects and invest in competitiveness, sustainability and security. In the long term, according to Mario Draghi, additional annual investments of between 750 and 800 billion euros are necessary to achieve the set goals. Asmussen describes the label as a guide for consumers, signaling European investment and building trust.

Investments and private pension provision

The insurance industry plays an important role as an institutional investor in Europe, with investments worth around 8 trillion euros. The GDV is committed to ensuring that the label is also awarded to capital-forming insurance products. On June 5th, member states will meet in Paris to discuss details of the label and advance implementation.

The needs of savers are at the center of this discourse. Savers want products that offer security and trust. Life insurance is particularly attractive because it offers access to the capital market with a safety net and guarantees a secure pension for the rest of your life. The label could not only promote investments in Europe, but also strengthen private pension provision, which is increasingly coming into focus due to demographic change.

Necessary reforms and challenges

The banking association has welcomed the new “Communication on Savings and Investments Union” presented in Brussels. President Christian Sewing calls for decisive measures to strengthen the banking and capital markets in Europe. These are crucial to mobilize urgently needed investments in areas such as defence, security, innovation and climate protection. Sewing warns that many challenges cannot be overcome without an efficient European capital market.

He emphasizes that there is sufficient capital, but it must be used productively to secure investments in Europe in the long term. The “Savings and Investments Union” should be designed to be efficient, competitive and innovation-friendly. Proposed goals include, among other things, a reform of the securitization market and the expansion of capital market-supported pension provision.

The demands on all actors are high: compromises and concrete measures are required at both national and European levels in order to achieve the goals set. Sewing underlines the need for major reform steps to make the European economy relevant in a rapidly changing, multilateral world.