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For many years, the Capital Markets Union has been a hot topic in Europe, yet little progress has been made. European savings are abundant, but poorly allocated, frequently directed towards liquid and risk-free investments, and, partially, financing the rest of the world. The investment needs of sectors like sustainable transition and artificial intelligence are huge, yet savings and investments are poorly aligned. Initiatives such as the Retail Investment Strategy (RIS) lack a comprehensive vision and are plagued with bureaucracy. The Basel III and Solvency II regulations discourage institutions from investing in equities. The profitability of European companies is stagnant, which does not attract savings. To break this vicious circle, viable projects must be encouraged and regulatory complexities reduced. The banking sector plays a crucial role in linking savings and investments, but cannot solve this problem alone; the impetus should come from government authorities with a long-term strategic vision. JEL classification: E71, G11, G21, G28.