Europe faces a €1 trillion annual funding gap through 2030, yet banks supply only 85 % of corporate lending. Securitisation offers a route to broaden capital markets, but EU rules constrain the market to just 0.3 % of GDP.

The EU’s Savings and Investments Union aims to boost securitisation, yet current proposals lift the Ucits cap only to 20 %, a modest jump that would add merely €20 bn to the market. Removing the 10 % rule could release €150 bn of pent‑up demand and yield €30 bn yearly.

Reforms that preserved underwriting quality and transparency have kept defaults near zero in Europe and the US. Still, Ucits face an outdated 1985 cap that stifles investment in securitisations, keeping European funds far below U.S. peers.

Policymakers who lift the cap can deepen capital markets, diversify funding, cut systemic risk, and close the €1 trillion gap—otherwise Europe’s lag will persist.