Maria Luís Albuquerque: “We want to provide profitable investments to Europeans”

Europeans save large sums of money, but they are losing the value of their wealth because they lack adequate investment opportunities. According to the European Commission, the completion of the Capital Markets Union could change this situation. This reform requires harmonized implementation—ensuring that the rules are interpreted consistently across the European Union. This is its biggest challenge, in the hands of Portuguese Commissioner Maria Luís Albuquerque. Interviewed by the Hungarian newspaper 'Portfolio,' the former Minister of Finance, European Commissioner for Financial Services and the Savings and Investment Union, says she believes that capital has no nationality and that if Europe creates a more efficient capital market, the money will remain in Europe and ultimately benefit citizens. The proposed tax incentives are aimed exclusively at small investors, while financial institutions will be boosted by market competition.

A reform long thought of, but which took forever to reach the implementation stage. But "this time, we are applying a much more comprehensive approach; we are not focused solely on capital markets. What we want to create is a complete financial ecosystem that works for everyone," he said. "Our goal is also to complete the Banking Union and create capital markets that offer better investment opportunities, both for savers and for companies seeking financing. The Capital Markets Union is an integral part of the Savings and Investment Union. That is why we are simultaneously working on completing the Banking Union, while placing European citizens at the center of our strategy."

This is how, Maria Luís Albuquerque hopes, the European money being invested in the United States will stay in Europe and generate wealth there: "If we develop our markets and make them larger and more attractive, people will be more inclined to keep their money in Europe. This would not only increase their personal wealth, but would also contribute to Europe's economic growth—creating better jobs and higher wages."

"We're not trying to create a single supervisory authority or a single stock exchange. That's not the goal. But in the current system, our money is held in 27 different pockets, and we can't reap the benefits of pooling our resources. We need to dismantle the barriers that prevent this. This is about integration," the commissioner added. Luís Albuquerque noted that "differences in insolvency and taxation legislation also complicate the picture. I'm not saying everything should be harmonized—but a certain degree of convergence is necessary to realize the full potential of the European market. A single, optional legal framework—which is what the 28th regime is—would solve much of the problem."

"In this context, it's important to recognize that our competitors aren't other Europeans—not Hungarians, Portuguese, or Germans—but countries outside the EU, such as the United States and China. Competition is global," she said, knowing that "the biggest problem (for companies) isn't going public, but excessive regulation, which makes it impossible to make a decent profit in the EU. If we want to compete with the US or China, we need to compete as Europeans," and not as 27 economies evolving in parallel. But the commissioner knows that this goes against "human nature," which dislikes losing control. In any case, “what I advocate is not centralization. Frankly, I don't think that would work. The EU is too diverse, as are our capital markets. What I want is for the same question to receive the same answer no matter where it's asked. That's what I mean by single supervision—not necessarily a single supervisor. These are two different things. The rules should be the same, but in practice, they are interpreted and applied differently across member states. Our goal is for procedures to be the same in Budapest, Lisbon, or Vilnius. Who does the supervision is secondary—what matters is that the outcome is consistent. This also builds trust among supervisors.”

But given the complexity of the process, Maria Luís Albuquerque doesn't commit to specific dates: "It's unrealistic to set a deadline. We're talking about a huge and complex transformation." But it's essential: after all, there are 11 trillion euros in bank coffers waiting for the new system. "If we could mobilize just a small portion of it to the capital markets, it would make the European economy significantly more competitive."

For the former Portuguese minister, Europe needs to be made more attractive to competitors, especially from the United States: "If we offer tax advantages for certain investment products, that alone can make them more attractive. This is part of the recommendation we will make regarding the new savings and investment accounts. People will pay attention if they see it's worth trying." "The goal isn't to tell people what to do with their money. The goal is to ensure they have options—real opportunities and meaningful incentives. Once they have them, the choice is theirs."

In an interview with Szabó Dániel, the Commissioner also said that "we are working on other initiatives. One of them is the Retail Investment Strategy, which is currently undergoing tripartite negotiations at EU level. It's part of a broader reform package aimed at helping people feel more confident and empowered to participate in capital markets. And if someone still chooses to keep all their savings in a bank deposit—that's fine too. It's their money. The point is: let them choose."