Managing money effectively is essential for achieving financial stability, yet the optimal approach to generating substantial returns on savings is not always straightforward. In general, Europeans tend to invest in fewer stocks compared to their American counterparts, often opting to keep their money in bank accounts instead.
Despite this, investment habits across the European Union vary significantly. These differences are influenced by a combination of market offerings and cultural attitudes toward money. To better understand how much of household savings are directed into capital markets, the Association for Financial Markets in Europe (AFME) uses a ‘Household Market Investment Indicator’. This indicator measures the value of financial instruments held by Europeans as a percentage of national output. The instruments considered include equity shares (stocks), investment fund shares (such as ETFs), bonds, life insurance reserves, and pension fund holdings. It excludes cash, deposits, and unlisted equity.
“Market-based instruments typically offer higher long-term returns than traditional bank accounts, which often lose value due to inflation,” said a spokesperson from AFME.
Denmark and Sweden lead the way
According to AFME’s Capital Markets Union report, household financial assets in the EU were nearly equal in size to the bloc’s GDP in the first half of 2025, reaching 94% of the total value. This data comes as the EU continues to discuss how to best structure its capital markets to support investment in key sectors across the region.
Among EU countries, the ratio of household financial assets to GDP ranges from 16% in Romania to 194% in Denmark and Sweden. The Netherlands follows closely with a ratio of 164%. These three countries far outpace the rest, with Italy ranking fourth at 119%.
At the bottom of the rankings, Romania has a ratio of 16%, followed by Lithuania at 18% and Bulgaria at 20%. The UK, although no longer an EU member, has a ratio of 122%.
According to the AFME spokesperson, countries that achieve high investment levels usually combine three key elements: well-developed pension schemes (such as those in the Netherlands, the US, and the Nordic countries), tax benefits for investing, and simple, user-friendly investment accounts.
The AFME highlighted Sweden’s Investment Savings Account (ISK) as a successful example of how policy can encourage citizens to invest. These accounts make it easy and tax-efficient for individuals to invest in stocks, ETFs, and funds, according to the group.
Capital markets savings per person
In addition to ratios, AFME data also provides insight into the scale of investments. In the first half of 2025, the average household financial assets per person in the EU stood at €42,069.
This figure varies widely among EU members, ranging from €2,880 in Romania to €150,034 in Denmark. Capital markets savings per person also exceed €100,000 in the Netherlands and Sweden.
Luxembourg ranks fourth with €76,937, highlighting how much ahead the top three countries are. Nine EU countries, representing one-third of the bloc, have less than €10,000 in capital markets savings per person. Besides Romania, these countries include Bulgaria, Poland, Lithuania, Greece, Latvia, Estonia, Slovakia, and Slovenia.
The UK has the highest figure among Europe’s top five economies, with €75,463 in capital markets savings per person.