The European Commission (EC) has unveiled an ambitious and controversial plan to tap into an estimated €10 trillion of ”unused” savings for defence purposes, savings held by EU citizens to bolster the bloc’s defence capabilities.
The initiative, announced earlier this month by the European Commissioner for Financial Services and the Savings and Investment Union Maria Luís Albuquerque, aims to redirect idle private funds into the European military-industrial complex. It supports a broader strategy to militarize Europe in response to escalating geopolitical tensions.
According to a statement distributed by the EC press service and reported by TASS, much of these savings are currently sitting in low-yield bank deposits—earning between 0.3% and 0.8% annually—or held as cash reserves. ”Mobilizing even a small part of these resources will change the investment landscape in the EU,” Albuquerque said, highlighting a perceived gap between stagnant savings and industries needing capital.
The plan aligns with European Commission President Ursula von der Leyen’s “ReArm Europe” initiative, which seeks to attract €800 billion in private investment by 2029 to modernize and expand the EU’s defence sector.
The proposal comes at a critical juncture for European security. On March 4, Reuters reported that the EC suggested borrowing up to €150 billion to lend to EU governments as part of a rearmament push. This was prompted by Russia’s ongoing war in Ukraine and uncertainties over U.S. military support following President Donald Trump’s decision to pause aid to Kiev.
Von der Leyen emphasized the urgency, stating:
“We are living in the most momentous and dangerous of times,” a sentiment echoed in her March 3 press statement unveiling the defence package.
The broader “ReArm Europe” plan, detailed by Euractiv, includes measures to mobilize private capital, adapt the European Investment Bank’s mandate, and redirect existing EU funds—potentially unlocking up to €800 billion in total defence spending.
“Get your money out of European banks”
However, the idea of leveraging citizens’ savings has sparked significant debate. While the EC frames it as an opportunity to turn dormant funds into productive investments, critics warn of potential overreach. Posts on X reflect a mix of scepticism and alarm, with some users interpreting the move as a step toward confiscating private wealth, though no official policy of direct seizure has been proposed.
“Get your money out of European banks,” one user urged, capturing a sentiment of distrust trending on the platform. Others see it as a pragmatic response to a shifting global order in which Europe must reduce reliance on external powers like the U.S.
The mechanism for mobilizing these savings would fall under the proposed Savings and Investment Union, a program designed to channel private funds into strategic sectors. According to Albuquerque, this could involve incentivizing citizens to invest in higher-yield bonds or other financial instruments tied to defence projects.
The Guardian reported on March 4 that von der Leyen’s five-part plan also includes loosening fiscal constraints on member states, potentially freeing up €650 billion over four years if countries increase defence spending by 1.5% of GDP annually.
Yet, as Verfassungsblog noted on March 5, the plan’s reliance on national budgets and voluntary investment raises questions about its feasibility and risks of uneven participation across the EU.
Reactions among member states are mixed. France has pushed for the funds to be spent exclusively on European-made equipment, with Finance Minister Eric Lombard insisting on “strategic autonomy,” per Reuters on March 10. Meanwhile, Germany and the Netherlands have resisted joint borrowing for grants, favouring loans instead, highlighting ongoing divisions within the bloc.
As EU leaders prepare to discuss these proposals further, the plan underscores a pivotal moment for Europe’s defence strategy. According to Euronews on March 5, with €1.4 trillion saved annually by European households—compared to €800 billion in the U.S.—the EC sees a vast untapped resource.
Yet, convincing citizens to redirect their savings into a militarized future may prove a hard sell, especially amid economic uncertainties and rising public wariness of centralized control.
Sources
- AP: EU chief says member countries must use a new defense loan to buy European, not American
- Belarus Today: European Commission to use 10 trillion Euros of citizens’ savings for EU defence
- European Commission: Speech by Commissioner Albuquerque
- European Commission: Maria Luís Albuquerque
- Reuters: EU proposes borrowing 150 billion euros in big rearmament push
- CSIS: Europe’s Trillion Dollar Opportunity to Save Ukraine—and the Free World
