On 30 September 2025, the European Commission (Commission) published a Financial Literacy Strategy Communication (the Strategy). The Strategy is one of several initiatives that form the Savings and Investments Union (SIU), which seeks to further integrate the EU’s capital markets and channel more savings towards investments thereby funding the EU’s climate transition and strategic autonomy. The Commission believes that enhancing financial literacy will support these goals by empowering EU citizens to secure financial independence and well-being. In addition, having higher financial literacy among the EU population will support the channeling of retail savings channeled to investments. 

Current levels of financial literacy

Currently, the Commission considers levels of financial literacy to be very low in the EU. A 2023 Eurobarometer survey found that, on average, only 18 percent of EU citizens have a high level of financial literacy. The statistics also reflect, in the view of the Commission, the relationship between financial literacy and financial decision-making: the Commission believes it likely that poor financial literacy levels are an important contributing factor as to why there is a relatively low level of retail participation in capital markets across the EU.

The Strategy

As the EU does not have strong competences to regulate in the fields where enhancing financial literacy would be best addressed, such as in educational and social policies, the Commission’s Communication only proposes coordinating and supporting measures that aim to complement existing Member State financial literacy strategies and initiatives undertaken by public and private stakeholders. The Strategy is therefore targeted at actions and initiatives whereby EU action could provide most added value.

The different initiatives set out in the Strategy are grouped under four interrelated pillars:

1. Coordination and best practice

Acknowledging that all Member States already have a financial literacy strategy in place or are developing one, the Commission pledges to work with relevant stakeholders to define key thematic priorities and identify best practices within these policies. Given this, the Commission has set out the following initiatives:

  • Starting in Q1 2026, the Commission will organise financial literacy thematic meetings of relevant government expert groups, where warranted, to coordinate efforts on communication, awareness raising, monitoring, evaluation and funding of national financial literacy initiatives on a regular basis.
  • From 2026, the Commission will organise regular workshops to facilitate exchanges, foster cooperation and promote the creation of a community of financial literacy practitioners.
  • Starting in Q4 2026, the Commission will cooperate with stakeholders to define thematic priority areas and identify best practices and use these to support Member State experts in designing and implementing a financial literacy initiative. Each Member State will be responsible for evaluating the implementation of the identified best practices.
  • By Q1 2027, the Commission intends to support the creation of a voluntary, principle-based EU code of conduct for private and not-for-profit organisations providing financial literacy initiatives. It will collaborate with stakeholders on this initiative. The Commission recommends that Member States incorporate this code of conduct into their national financial literacy strategies.
  • In 2027 the Commission will organise a ministerial-level meeting to take stock of progress. Thereafter the intention is to organise such a meeting on a bi-annual basis.

2. Communication and awareness raising

The Commission will design an awareness campaign to complement existing Member State initiatives in the field of financial literacy. The focus of this EU-wide campaign will be on personal finance skills, such as budget planning, retirement planning, debt management, risk management and fraud and scam prevention. Within the context of this campaign, the Commission lists the following targeted initiatives:

  • By 2026 it will, in cooperation with Member States, create a network of reputable “financial literacy ambassadors” to foster debate at the national level.
  • It will run an extensive communication and social media campaign, targeting various groups, including youth, children and vulnerable ones. The campaign also aims to raise awareness on EU funding schemes in support of national financial literacy strategies and initiatives.
  • The Commission will hold public events focused on financial literacy and its role in supporting financial well-being, as part of broader awareness-raising initiatives.

3. Funding for financial literacy initiatives

The Commission will not provide additional funding to the initiatives under the Strategy. Instead, it will encourage stakeholders to use the funds already available to them. In particular, the Commission intends to:

  • Set up a website to help stakeholders find information on existing EU funding channels for financial literacy initiatives and research and call on Member States to improve the visibility of national funding channels for financial literacy initiatives.
  • Promote the use of the financial literacy competence frameworks to design financial literacy initiatives and research projects, including where they may benefit from EU funding.
  • Encourage Member States to make the best use of existing and future funding channels, including under the current multiannual financial framework, such as Erasmus+, European Social Fund +, Single Market Programme, and the Technical Support Instrument.

4. Monitoring progress and assessing impacts.

Finally, the Commission will set up a number of initiatives to assess the progress and impacts of the above initiatives. More concretely, it intends to take the following measures:

  • The Commission will organise a second Flash Eurobarometer on monitoring levels of financial literacy in the EU in 2027 and will continue to do so on a regular basis.
  • The Commission will support the development and uptake of evaluation tools by Member States and encourage stakeholders to use the Commission’s Learning Lab on Investing in Quality Education and Training for the evaluation of their financial literacy initiatives.
  • The Commission will continue to consider financial sector issues including financial literacy in the European Semester process. Where helpful, the Commission may propose country-specific recommendations in these areas.

Conclusion

As mentioned above, the Strategy is an important initiative under the SIU that is intended to foster an investment culture in the EU. Achieving strategic autonomy and transitioning to a net-zero economy are core objectives for the EU, making this initiative essential to its long-term vision. Significant investments are required to reach these core objectives: the 2024 Draghi report on EU competitiveness estimated that annual investment levels of around 5% of EU GDP are needed.

In comparison to economies like that of the United States, the EU’s population commits a smaller proportion of its savings to investments, instead keeping their wealth on savings accounts. The Strategy, alongside the Commission Recommendation on Increasing the Availability of Savings and Investment Accounts published on the same day, and other initiatives under the SIU, are aimed at changing this. That said, and as can be concluded from the measures announced above, the Commission does not have strong policy-making competences and takes a more coordinating and supporting role. It will need to rely on Member States in reaching its ultimate goals. Plus, fostering an investment culture will take time and the effect of improved financial literacy on retail investment levels will therefore not immediately become visible.