The study highlights the savings and investment “gap” recently recorded in Greece compared to other countries and highlights the importance of stimulating domestic investment through initiatives to strengthen the domestic capital market. In particular, it examines the European experience of providing tax incentives for domestic private investment through the capital market, and makes an indicative proposal for the provision of similar incentives in Greece. The indicative proposal includes two strands (a) targeted tax incentives for long-term private investment in domestic securities (e.g. domestic AIFs) and priority sectors such as SMEs, innovation-oriented companies, venture capital vehicles, green investments and infrastructure based on EU best practices, and (b) insurance reform by strengthening the capitalisation pillars of the pension system. The strengthening of savings and investment through the capital market creates significant economic benefits as households become “stakeholders” in the recovery of the Greek economy, the capital market develops by financing productive investment, and the long-term fiscal burden of financing the insurance system is reduced. The indicative proposal is estimated to create new reserves for investment of up to €99 billion over 40 years. Therefore, policy measures to stimulate domestic savings seem appropriate as a priority in the context of exploiting “fiscal space”.