Euronext CEO: Dutch youth should learn to invest in financial services

Dutch youth must receive education in investing and financial services to drive a cultural shift where people move beyond saving in bank accounts and begin investing in innovative companies, says René van Vlerken, CEO of Euronext Amsterdam.

The problem, Van Vlerken explains, is that Europeans, and particularly the Dutch, prefer to keep their wealth in savings accounts. As a result, 3.3 trillion euros in savings remain largely unused, as noted in a report last year by Italian politician Enrico Letta for the European Commission.

"You actually need to start teaching this in secondary school, what it means for people to be financially self-sufficient," Van Vlerken said. "If you look at Italy, for example, children there invest from a young age in corporate bonds from Italian companies. It’s a kind of culture that has developed there."

Van Vlerken sees it as encouraging that young people are already engaged in cryptocurrency investments, even though he views it as speculation rather than traditional investing. "But the fact that they are active in crypto gives them a kind of familiarity with the idea that investing can also lead to negative returns. You can better handle losses. The current generation of retail investors is fairly risk-averse, but you never learn to ride a bike without falling down first."

In addition to cultural shifts, Van Vlerken also pointed out that current European laws and regulations make it difficult for retail investors to participate in initial public offerings (IPOs). However, he expects an upcoming EU directive to remove these barriers. "If you make it difficult with all kinds of obstacles to reactivate savings, you won’t get anywhere," he said.