Whether the White House has won the trade negotiations with the European Union is under discussion: Americans will now pay more for French wine and German cars, while Europeans will reduce taxation in US products. However, the talks clearly exposed Europe’s lack of pressure.

To gain more, the block must quickly improve its competitiveness, starting with the mobilization of trillion euros in investments needed to finance innovation, strengthen defense and carbon discharge.

Due to the focus on tariffs, the “block” finally has a plan worth following. The European Commission’s savings and investment union is its most coherent effort to integrate fragmented capital markets so far. The goal is simple: to convert the 35 trillion euros of Europe’s household savings – much of which are trapped in bank deposits – more productive investment.

The list of tasks is long: harmonization of insolvency codes, rationalizing source tax refunds, modernization of transactions infrastructure. But the real obstacle is not technical- it is political.

A timely reminder came recently from Norway’s state -of -the -art wealth fund. In a 14 -page letter to the European Commission, he warned that Europe’s capital markets remain very fragmented, the security of law is very weak and the implementation of regulations too unequal to attract long -term investment on a strong scale. The EU today represents just over 15% of the Fund’s portfolio, from 26% a decade ago.

The example of Sweden

In its attempt to reinforce the reforms, the European Commission does not need to start from scratch. An example to imitate is Sweden, which created Europe’s most investors’ friendly. During the reforms of the 1990s and 2000s, workers were registered with private pension funds that channeled market savings.

Financial education also strengthened investment culture. Investment savings have added a transparent means of retailers- instead of taxing any capital gain, the system imposes a flat-rate annual burden (about 1%) on the value of the portfolio.

The results are difficult to dispute: more liquidity, strong low capitalization performance and a culture that treats capital markets as a normal path to prosperity. Although Sweden represents only 3% of the EU’s gross domestic product, it often exceeds its largest counterparts in terms of initial public registrations.

On the other hand, the wider EU market remains a frustrating patch. Initiatives such as private pension funds are undermined by the lack of tax incentives. Delays in tax refund are still a problem. The fragmented supervision and the EU’s regulatory framework for the protection of established national bodies keep savings and trapped funds.

The committee’s plan contains some logical proposals – including for retirement funds, insolvency standards and tax simplification – but the EU should go further.

A unified supervisory authority for capital markets, though politically difficult to realize, should be the long -term goal. If this is not achieved, it would help to extend the competence of the European Authority of Mobile Values and Markets in cross -border areas, such as liquidation areas and systemic trading sites, while pressing national regulators to align the law enforcement.

Similarly, a voluntary single rules for cross -border products – known as the 28th regime – could provide businesses and savings greater legal security and lower compliance costs.

It would need simplified digital access, coherent supervision and coordinated tax treatment, so that low -cost investment across the EU can be made. In the end, national governments continue to shape savings behavior – through taxation policy and other taxation policy. Without better alignment in these areas, no EU framework will succeed.

European leaders would be wise to remember that the US could even tear this one -sided trade agreement at any time and seek further concessions. This makes the internal reforms highly urgent. If the EU really wants to boost growth, enhance strategic autonomy and help its savings prosper, it does not have the luxury of missing this opportunity.