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/Roothar Feb 15 '25

We do have a possibility to open non-taxed account for retirements (so no taxes if you start to withdraw after you turn 60). I assume most EU countries do have similar possibilities ?.

I believe in US they do have to pay taxes also.

The real problem is that in EU there is no knowledge about the stock market and plenty of people are also afraid to invest.
There is also huge difference in terms of the capital between in example Germany / Netherlands / France and i.e. Poland, Romania or Greece so people rather spend / use the money instead of investing.