Most European consumers have a poor understanding of financial matters, a knowledge gap that lowers their quality of life and holds back the region's financial services industry, and that must be tackled swiftly, the European Commission warned yesterday.

Brussels said it wanted to do more to promote the "financial capability" of the union's 480m consumers, and highlighted the drive as the latest effort to bolster the bloc's financial muscle. The Commission said capital markets had become more accessible to ordinary consumers, and that a growing number of Europeans were forced to take responsibility for their future financial wellbeing.