The Savings and Investment Union

On Tuesday, February 17, Bocconi University hosted “The Savings and Investment Union: Financial and Legal Perspectives on the Future of European Capital Markets”, an event organized by Minerva Investment Management Club and Corporate Law Academy. Moderated by Prof. Marco Ventoruzzo, Full Professor of Commercial Law at Bocconi University, the discussion explored the political, economic and legal implications of one of the European Union’s most ambitious projects: channeling Europe’s vast pool of savings into productive investments within the Union. In a context of geopolitical uncertainty and declining competitiveness, strengthening European capital markets has become not only an economic priority, but a strategic imperative.

Opening the panel, Dr. Issam Hallak, Policy Analyst at the European Parliament, provided an institutional overview of the Savings and Investment Union as a major legislative initiative currently at the proposal stage before the Commission. He emphasized the limits imposed by EU competences, particularly in taxation, and the persistent fragmentation that undermines the effectiveness of the single market. While the four fundamental freedoms formally guarantee capital mobility, the single market remains incomplete in practice. Dr. Hallak highlighted a significant shift in policy approach: from pursuing optimal allocation of resources across borders to fostering the emergence of European “champions.” Within its competences, the EU is seeking to facilitate capital flows but many obstacles, especially fiscal ones, remain in the hands of Member States.

Providing a broader economic perspective, Prof. Daniel Gros, Director of the Institute for European Policymaking at Bocconi University and Vice President of the Board of Eurizon, reflected on the evolution of Economic and Monetary Union and the structural reliance of Europe on bank-based financing. The core issue is not merely the quantity of investment, but its composition. European markets remain heavily oriented toward tangible assets, while innovation-driven growth increasingly depends on equity financing and investment in intangibles, including venture capital, by nature illiquid and risk-intensive. In this context, Prof. Gros stressed the importance of long-term institutional investors as a precondition for developing deeper capital markets capable of sustaining higher-risk investment.

From a legal transactional standpoint, Avv. Chiara Coppotelli, Associate at Latham & Watkins, examined the structural fragmentation of European corporate and capital markets law. Despite significant harmonization efforts, EU legislation, often implemented through directives, leaves room for divergent national interpretations and enforcement practices. Even in highly harmonized fields, differences in application generate uncertainty and increase transaction costs. This fragmentation partially explains why major cross-border financial instruments are frequently governed by New York or English law, perceived by investors as more predictable. Greater harmonization, ideally achieved through regulations rather than directives, would reduce legal risk and enhance investor confidence. She also noted how complex domestic regimes, such as Italy’s “Golden Power” legislation and tax system, may further discourage cross-border investment.

Concluding the panel, Dr. Chiara Rossetti, Service and Regulatory Advisor at Borsa Italiana, addressed the regulatory and supervisory dimension of market integration. Operating across multiple jurisdictions, market infrastructures face the daily challenge of ensuring consistent regulatory standards while respecting national supervisory competences. Although financial regulation in the EU has reached a high level of harmonization, supervision remains largely national. Current proposals aim to strengthen coordination mechanisms and information-sharing systems, moving gradually toward more centralized oversight. While full central supervision remains a medium-long-term objective, the trajectory, she argued, is directionally sound: harmonize where possible, balance local specificities, and build trust across jurisdictions.

Throughout the discussion, a clear message emerged: the Savings and Investment Union is not merely a technical refinement of the Capital Markets Union, but a transformative political project. Its success depends on navigating delicate questions of competence, taxation, legal certainty and supervisory balance. If effectively implemented, it could represent a decisive step toward unlocking Europe’s savings, strengthening competitiveness, and redefining the Union’s role in global financial markets.