Europe has substantial savings, but investment remains insufficient, and the main challenge is to turn available capital into economic growth more effectively, given that European households hold approximately 10 trillion euros in bank deposits, European Parliament Vice-President Victor Negrescu said on Thursday.

'I would like to begin my speech with a European paradox. Europe has substantial savings, but not enough investment. It has researchers, entrepreneurs and innovative ideas, but too many of our companies seek funding outside the European Union. We have a market of more than 450 million consumers, but our financial markets remain fragmented. European households hold approximately 10 trillion euros in bank deposits. At the same time, the Draghi report identified an additional investment requirement of 750-800 billion euros annually to strengthen Europe's competitiveness,' Negrescu said in a video message delivered to the 'Digital Finance in Central and Eastern Europe' Forum.

According to him, the European Union needs to develop tools that make it easier for companies to access financing and give citizens more options for using their savings.

'This does not mean that we should move people's savings into risky investments - that is not what we should do. It means, however, that we need to build tools that give citizens more options and enable European companies to obtain financing where and when they need it. Europe's major challenge is not only to mobilise more money, but also to turn available capital into economic growth more effectively. This is the objective of the Savings and Investments Union, one of the major reforms of the European project. And I believe that, for Romania and Central and Eastern Europe, this reform could represent a historic opportunity,' the European Parliament Vice-President said.

In his view, the development of Central and Eastern European economies requires stronger capital markets and greater citizen participation in investment opportunities.

'For decades, our economies have been catching up through public investment, European funds and foreign capital. These instruments remain essential. But the next stage of development also requires stronger capital markets, financing for innovative companies and greater citizen participation in economic opportunities. In Romania, the capitalisation of the regulated market reached approximately 579 billion lei at the end of 2025, according to data from the Financial Supervisory Authority. This is significant progress, but the real issue is not just the value of listed companies; it is the ability of the financial market to finance the real economy,' Negrescu explained.

He stressed that digitalisation could make it easier for businesses to access financing, but warned of the risks associated with fraud and the use of artificial intelligence.

'We need innovative Romanian companies to be able to grow in Romania, secure European funding and become international players without being forced to relocate their operations elsewhere, as has unfortunately happened. Digitalisation can accelerate this process. Artificial intelligence can improve risk assessment, reduce administrative costs and make financial services more accessible. Digital technologies can facilitate cross-border investment and give small businesses better access to financing. But digitalisation also brings additional responsibility, because trust is hard to build and can be lost through a single fraud, cyberattack or automated decision that nobody can explain,' the MEP warned.

In this context, Negrescu drew attention to the scale of payment fraud and the need for a regulatory framework that protects citizens without discouraging innovation.

'In 2024, reported payment fraud in the European Economic Area amounted to 4.2 billion euros. This figure shows that digital security is no longer merely a technical issue. It is an economic and social issue, as well as a matter of trust in institutions. That is why the European Union has developed a regulatory framework designed to address these challenges. The Markets in Crypto-Assets Regulation - MiCA introduces common rules for crypto-asset markets. DORA strengthens the digital operational resilience of the financial sector. The AI Act sets out requirements for uses of artificial intelligence that may affect citizens' rights and interests,' he said.

The European Parliament Vice-President called for clear and proportionate rules, as well as consistent implementation of legislation across the Member States.

'We do not need a Europe that regulates every innovation before understanding its potential, but neither do we need a digital market in which citizens are left to bear the risks on their own. We need clear, proportionate rules that are consistently enforced, and supervisory authorities capable of keeping pace with technological developments. This is also why cooperation between national authorities and European institutions is so important. A fintech company that complies with European rules should be able to grow in the single market without having to contend with 27 different administrative interpretations,' Negrescu said.

He also proposed that financial and digital literacy be treated as a strategic investment at European level, given that only a small proportion of citizens have a high level of financial knowledge.

'According to the Eurobarometer survey on financial literacy, only 18% of European citizens demonstrate a high level of financial knowledge. We may have the most advanced applications and the most modern investment platforms, but if people do not understand the difference between saving and investing, between return and risk, or between an authorised product and a fraudulent promise, the digital transformation will remain incomplete. That is why I propose treating financial and digital literacy as a strategic European investment, giving it a stronger place in school education, supporting adult training and developing programmes accessible to vulnerable people,' the MEP said.

Negrescu also said he supports allocating financial resources to the development of digital skills, research and innovation in the negotiations on the future EU budget for 2028-2034.

'We cannot ask Europe to become a technological leader if we do not invest in the companies, infrastructure and skills that make this goal possible. (...) Europe's financial future will not be decided solely by algorithms, digital platforms or new regulations. It will be determined by our ability to turn technology into trust, savings into investment and innovation into prosperity,' Victor Negrescu concluded.

The 'Digital Finance in Central and Eastern Europe' Forum is being held in Bucharest on Thursday, organised by the Financial Supervisory Authority (ASF), in cooperation with the Institute of Financial Studies (ISF). AGERPRES (RO - writing by: George Banciulea; EN - writing by: Simona Klodnischi)