EU launches quality seal: Finance Europe secures savings for the future!

EU launches quality seal: Finance Europe secures savings for the future!

France and several EU countries have introduced a new quality seal for financial products to keep investments from European savers in Europe. The so-called “Finance Europe” label is intended to ensure that more capital is made available for urgent investments in defense, the green transition and critical infrastructure. Finance Minister Éric Lombard emphasized the need for European investments to also benefit Europeans. However, this seal will not only function as a pure marketing tool, but will also have clear guidelines regarding its use.

The seal of quality is awarded to financial products such as ETFs (Exchange Traded Funds), which must make at least 70 percent of their investments in the European economic area. In order to qualify for the seal, a minimum investment period of five years is required. The background to this initiative is the alarming trend that around 300 billion euros in savings of European citizens are diverted abroad every year, especially to the USA. There are currently over €30 trillion in private savings in the EU, most of which are invested in cash and deposits.

Support and future prospects

The label is supported by a number of countries, including Germany, Estonia, Spain, Portugal, Luxembourg and the Netherlands. By 2030, it is estimated that Europe's main priorities will require an additional €800 billion. Lombard highlighted the geopolitical situation and underlined the importance of citizens' commitment to supporting their countries and the EU.

The seal of quality is expected to be awarded starting next year and could thus have a decisive influence on the direction of European investments. The French Finance Minister sees this as an opportunity to use citizens' money more for their own economic and social needs and to reduce dependence on foreign markets.

In the long term, this strategic initiative could not only strengthen the EU's competitiveness, but also create a new basis for economic growth and stability within Europe. The aim of mobilizing European capital in a targeted manner is seen as a crucial step in times of geopolitical uncertainty.

Another important element of this initiative is transparency: the seal of approval offers investors a certain level of security and confidence that their assets will remain in the region and are invested locally. At a time when trust in financial products is becoming increasingly important, “Finance Europe” could play a valuable role.

Mercury reports that the seal is seen as a step towards a sustainable and stable investment landscape in Europe. The seal of quality also has the potential to act as a model for other regions around the world that want to overcome similar challenges. Also Fund Professional emphasizes that the importance of local investment and support for European projects should not be underestimated in this context.