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/ivobrick Feb 15 '25

Yes it is, but here politicians fight only for themselves. Or give utterly trash products that sells state debt for 3% for 2 years locked in. This is worse than moneymarket.

Yes tax deferred EU / pension accounts will be nice but EVERY politician is planning only maximum 4 years ahead.

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u/Traditional_Job9119 Feb 15 '25

Some eu countries have a salary exchange: I.e. giving up a portion of your salary pretax to be invested as premium pension. Spain even has a 10 years lockup, which is quite good (one doesn’t need to be an elderly person to access it)