The Commission has adopted two measures to support the essential role institutional investors, such as banks and insurers, play in the financing the EU economy.
These measures deliver on the roadmap set out in the Savings and Investments Union (SIU) strategy and contribute to the EU's broader objectives of supporting private investment, improving capital market integration, and strengthening Europe's long-term competitiveness, for the benefit of EU businesses and households.
They aim at boosting equity investments by banks and insurers, including where these investments are made alongside public entities – such as the European Investment Bank or national promotional banks.
Amendments to Solvency II rules
The European insurance sector manages around €10 trillion of assets and is a key institutional investor.
The amendments to the Solvency II delegated regulation encourage long-term investments by enhancing the investment capacity of insurers. This will allow them to allocate more capital to financing the real economy, while maintaining the robustness of the legal framework and the protection of policyholders. For instance, the delegated regulation includes a dedicated treatment for long-term equity investments by insurers to encourage the financing of European firms and facilitate their access to stable, long-term capital, including through private equity and venture capital.
To support EU strategic priorities such as the green and digital transitions or security and defence projects, a new preferential treatment is also introduced for insurers' equity investments under legislative programmes where public subsidies and guarantees are involved. Alignment with banking rules on legislative programmes regarding the eligibility criteria ensures legal certainty and predictability for both public and private investors.
The review of the Solvency II Delegated regulation also removes unnecessary prudential costs for insurers when investing in securitisation. This is one of the four deliverables under the securitisation package adopted in June 2025 aimed at reviving the EU securitisation market.
The amendments to the Solvency II Delegated Regulation will preserve insurers' ability to offer long-term life insurance and pension products, by making the prudential framework more conducive to long-term, guarantee-based insurance business. Certain types of life insurance policies have an investment objective, helping citizens to get better returns on their savings and improve their financial well-being.
The review also reduces administrative burdens by streamlining reporting and disclosure requirements, removing overlaps with other EU rules, and introducing more proportionality for insurers with simple business models.
Legislative programmes under the Capital Requirements Regulation
The Communication adopted today provides guidance on how banks can benefit from more favourable prudential treatment under the Capital Requirements Regulation (CRR) when investing in equity through legislative programmes — structured public investment schemes established under EU or national law. These programmes, which combine public backing (such as guarantees or co-investment) with private funding and clear oversight mechanisms, support sectors that are critical to Europe's competitiveness and security, including clean technologies, digital innovation and defence.
By clarifying how the relevant Article 133(5) of the CRR applies, the guidance promotes a consistent and transparent application across the Single Market. Banks investing under eligible legislative programmes will be able to apply a lower capital charge to these exposures, reflecting their reduced risk, while maintaining strong supervisory safeguards and financial stability.
This initiative makes it easier for EU companies to access equity financing. It is also an important step toward a more integrated and diversified EU capital market — in line with the objectives set out in the Competitiveness Compass and the Commission's broader investment agenda under the SIU.
The Commission has set up a public register of legislative programmes, available on the DG FISMA website .
Background
In March 2025, the Commission adopted the Communication on the Savings and Investments Union (SIU), setting out a comprehensive agenda to deepen Europe's capital markets and mobilise more private capital in support of EU priorities. The measures adopted today — the Solvency II Delegated Act and the Communication on legislative programmes under the CRR — are part of the deliverables under this initiative.
Next steps
The Solvency II amending delegated act is subject to scrutiny by the European Parliament and the Council over a maximum period of three months. This period can be extended by three months at the request of the European Parliament or of the Council.
The amendments to the Solvency II Delegated Regulation will apply at the same time of the Directive (EU) 2025/2, namely from 30 January 2027.
