Europe's €6.3trn Idle Savings Lose Purchasing Power as Inflation Rises

Euronews reported on 15 September 2026 that a Revolut analysis has identified €6.3 trillion of deposits parked in low‑yield bank accounts across twenty European Union members. The study estimates that, at current inflation and interest‑rate levels, savers lose roughly €294 in real purchasing power for every €10,000 kept in such accounts. The assessment covers a range of economies, from Germany and France to the Baltic states, and highlights the stark contrast between nominal interest earnings and the erosion of value caused by the euro‑area’s persistently high inflation. The findings arrive as Brussels intensifies its push to funnel private savings into the EU’s Capital Markets Union (CMU). policymakers argue that channeling idle cash into equities, bonds and other capital‑market instruments will strengthen the single market, enhance financing for green and digital transitions, and reduce reliance on bank deposits that offer marginal returns. The CMU agenda, championed by the European Commission and the European Central Bank, seeks to harmonise cross‑border investment rules, broaden access to listed securities, and encourage the development of pan‑EU investment products that can compete with traditional savings accounts. For European households and businesses, the study underscores the urgency of diversifying assets to preserve real wealth. Financial advisers are urging clients to consider inflation‑linked bonds, diversified equity funds or regulated savings‑plus schemes. The EU plans to present updated CMU proposals at the European Council meeting in November 2026, potentially introducing tax incentives and simplified registration for cross‑border investment platforms. The rollout could reshape the savings landscape, though its effectiveness will depend on banking sector responses and consumer confidence in higher‑risk, higher‑return options.

Source: Euronews. Read the original report ↗