Vanguard Backs Tax Wrapper to Boost EU Retail Investment
May 29, 2025
The European Commission plans to present a “blueprint” later this year for the development of an investment savings account for consumers, including recommendations to EU member states on how to grant tax advantages to retail investors.
The accounts would be part of the development of the EU’s savings and investment union project, which aims to encourage households to invest more of their money in capital markets.
The plans had received a “lukewarm” response from ministers and regulators in many EU countries, according to experts.
However, the introduction of tax incentivised accounts would make “a meaningful difference” in encouraging more retail investment in Europe, according to Robyn Laidlaw, principal and head of distribution for Europe at Vanguard.
Michael Pedroni, chief executive of Highland Global Advisors, a regulatory consultancy, said the tax advantaged status of long-term savings in the US was “the single most important thing that has transformed the US market”.
“It has to be, in my view, a savings account rather than a product and so that’s a big debate that’s going on in Europe right now,” he said on the webcast.