Financial literacy in Europe

Subject: Financial literacy in Europe

The financial literacy of citizens of all generations is fundamental to promoting their security, sustainability and financial freedom. Unfortunately, according to Eurobarometer1, only 18 % of Europeans have a high level of financial literacy, which is the same percentage as those with a low level. This scenario harms citizens first and foremost, but also our economies, which are deprived of savings and investments. If greater financial literacy were achieved among the general population, more opportunities could be created.

It is therefore regrettable that in countries with even lower levels of financial literacy, such as Portugal, political forces oppose the inclusion of this subject in school curricula. On the other hand, we welcome the fact that important pilot projects are underway in this area2.

We emphasise the importance that Commissioner McGuinness attaches to this issue, as has been brought to the fore in numerous speeches34 and initiatives56.

In light of the above:

1. Does the Commission intend to present any legislative initiatives or recommendations on financial literacy before the end of its term?

2. What kind of initiatives promoted by the Member States does the Commission support?

3. What degree of priority does the Commission give to financial literacy within the framework of economic and financial policy?

Submitted: 3.9.2024

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3 https://ec.europa.eu/commission/presscorner/detail/en/speech_23_3453

4 https://www.youtube.com/watch?v=D7FLL_0Mexw

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Answer given by Ms McGuinness on behalf of the European Commission (4 November 2024)

The Commission fully recognises the importance of financial literacy. The Commission has been and continues to be engaged in initiatives to enhance it.

Article 165 of the Treaty on the Functioning of the European Union (TFEU) gives the Commission a supporting role in education by encouraging cooperation between Member States and supporting their actions and the Commissioner-designate for Financial Services and the Savings and Investments Union (1) is tasked with developing a strategy on financial literacy.

The Commission supports various transnational projects and initiatives by stakeholders and Member States on financial literacy by providing funding through the Erasmus+ programme (2), the Technical Support Instrument (TSI) (3) and the European Social Fund (4). The Commission also encourages the exchange of best practices among Member States.

Financial literacy is a high priority within the Commission's economic and financial policy framework. The Commission, together with the Organisation for Economic Cooperation and Development International Network on Financial Education (OECD/INFE) developed two financial competence frameworks for adults, and children and young people in 202 2 (5) and 2023 (6) respectively.

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3 3https://ec.europa.eu/commission/presscorner/detail/en/speech_23_3453

4 4https://www.youtube.com/watch?v=D7FLL_0Mexw

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1 ∙ ⸱ https://commission.europa.eu/document/download/ac06a896-2645-4857-9958-467d2ce6f221_en?filename=Mission%20letter%20-%20ALBUQUERQUE.pdf

2 ∙ ⸱ Financial literacy projects with adults, schoolteachers and adult education teachers are funded as part of Erasmus+, for example: https://erasmus-

plus.ec.europa.eu/projects/search/details/2021-1-AT01-KA220-SCH-000032827 3 ∙ ⸱ https://reform-support.ec.europa.eu/tsi-2024-flagship-digital-financial-literacy_en#:~:text=This%2520flagship%2520aims%2520at%2520helping%2520EU 4 ∙ ⸱ The European Social Fund Plus also finances projects that include improving financial literacy, for example: https://european-social-fund- plus.ec.europa.eu/en/social-innovation-match/case-study/projekt-domov 5 ∙ ⸱ https://finance.ec.europa.eu/system/files/2022-01/220111-financial-competence-framework-adults_en.pdf 6 ∙ ⸱ https://finance.ec.europa.eu/system/files/2023-09/230927-financial-competence-framework-children-youth_en.pdf












| | )In the Retail Investment Strategy (7) proposal of May 2023, the Commission proposes to require Member States to promote the financial education of retail clients. This proposal is currently with the co-legislators.

Financial literacy was also a priority for the Belgian Presidency, from January to June 2024, which the Commission fully supported, including by way of a high-level conference and the adoption of Council conclusions by Finance Ministers. A number of Member States are working on national strategies on financial literacy.

7 ∙ ⸱ https://finance.ec.europa.eu/publications/retail-investment-strategy_en | | ( | | )