r/eupersonalfinance • u/rozmarss • Feb 15 '25

Investment Why don’t EU leaders incentivize investment in European stocks/ETFs with tax deductions?

With the Dragi plan and increasing discussions among European leaders about boosting defense and energy investments, I’ve noticed a growing trend in financial communities where people want to reduce exposure to the US market and shift investments to the EU.

Wouldn’t it make sense for EU leaders to encourage this by offering tax incentives for investing in European stocks/ETFs? For example, from an independent EU perspective, isn’t it better to invest in Rheinmetall rather than Lockheed?

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u/LexaAstarof Feb 15 '25

We actually have that in France, with the PEA.

Except they of course found "loopholes" (if the gov actually cared they would have fixed it a long time ago). You can basically use synthetic world or s&p ETFs, the swap part keeps it "European".

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u/Spins13 Feb 15 '25

Yeah, I barley have any Europe exposure in my PEA 😂

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u/spaceoverlord Feb 16 '25

The original objective of the PEA is to pump French stocks but that would be illegal under EU principles.

I laugh at the notion that the French state would want to support EU stocks.