EU eyes plan to deepen single market in March, accelerate capital markets union

• The EU aims to complete phase one of the Savings and Investment Union by June, covering market integration, supervision, and securitization
• If progress stalls with all 27 member states, the EU will pursue 'enhanced cooperation' with at least 9 countries moving forward at a faster pace
• The capital markets union seeks to unlock approximately 10 trillion euros in savings currently sitting idle in bank accounts for more productive investment

Summary

The European Commission will unveil a plan in March to deepen the EU's single market of 450 million consumers, aiming to simplify cross-border operations for companies, Commission President Ursula von der Leyen announced on February 12, 2026.

Key Initiatives:

Speaking after an EU leaders' meeting on economic competitiveness, von der Leyen outlined priority measures to accelerate the long-stalled capital markets union. The initiative targets approximately €10 trillion in savings currently held in bank accounts, seeking to channel these funds into more productive investments.

Timeline and Scope:

The Commission aims to complete phase one of the Savings and Investment Union by June, covering three critical areas: market integration, supervision, and securitization. This aggressive timeline reflects urgency around strengthening EU competitiveness.

Flexibility Mechanism:

If consensus among all 27 EU member states proves unattainable, von der Leyen indicated willingness to proceed with "enhanced cooperation" involving a minimum of nine member states. This approach allows faster-moving countries to advance the initiative without waiting for unanimous agreement.

Market Implications:

The single market deepening and capital markets union could significantly impact EU financial services, banking, and investment sectors. Mobilizing €10 trillion in dormant savings represents substantial potential capital for EU businesses and infrastructure. Enhanced cross-border operations may benefit multinational corporations while potentially challenging smaller domestic players. The willingness to bypass holdout nations signals determination to overcome traditional EU bureaucratic obstacles, potentially accelerating implementation timelines for participating markets.

The initiative addresses longstanding EU competitiveness concerns amid global economic pressures, particularly competition from the U.S. and China.