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BETTER FINANCE, the leading advocate for European citizens as investors, savers, shareholders, and financial services users, unveils its manifesto ahead of the upcoming European Union elections in June 2024.
The BETTER FINANCE EU Elections Manifesto outlines key priorities for 2024-2029, emphasising the necessity to harness the potential of the Capital Markets Union (CMU) for the benefit of citizens, financial consumers, retail investors, and pension savers while contributing to the prosperity and security of Europe.Households are by far the main providers ofcapital to enterprises, either directly through capital markets or indirectly through intermediated packaged investment products such as investment funds, life insurance, and pension funds. Despite a decade of policymakers urging EU citizens to invest more in capital markets, retail investor involvement in EU capital markets remains notably low compared to other advanced economies.
This lack of participation clearly signals that EU capital markets currently lack sufficient appeal for retail investors. The diminished significance and scale of EU capital markets since 2008, particularly in comparison to the United States, pose a threat to the financial well-being of EU citizens and the competitiveness of the EU economy.
Envisioning a genuinely sustainable Capital Markets Union that prioritises people's interests, the manifesto is the result ofan EU-wide survey identifying the most pressing issuesfor financial consumers. It echoesBETTER FINANCE’s key priorities from 2019-2024, which still require attention. Given that many of these priorities have not been addressed by policymakers, it is crucialfor the incoming EU Parliament and Commission to build on existing efforts and setmore ambitious targets for the financial well-being of EU citizens.