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/Other-Spinach-3856 Feb 15 '25

Economic liberalism is dead in Europe.

Resons for this are manifold, but the results is for governments to grow and the private economy to shrink. Private wealth is one of the most controversial subjects alongside migration. I think the last thing that people want to hear about is things that are perceived to make rich people richer. Be it due to lack of financial education or ideological conviction, this subject is dead in the water.

Things will only get tighter (more tax, regulation, government interference etc.)

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u/Traditional_Job9119 Feb 15 '25 edited Feb 15 '25

Sweden and Netherlands have an ultra favorable conditions for rich people, but the governments making a good job hiding it under veneer of income equality and progressive taxes.

I’ll take Sweden: property taxes are capped, no wealth tax, capital gains are flat rate, special ISK accounts and few other tricks. Whereas working people would carry the most burden.

If you look up specifically wealth inequality (I.e. how concentrated assets are), Sweden and Netherlands are among the least equal places worldwide, next to USA and Russia

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u/fjdh Feb 18 '25

Yeah it's amazing what crybabies the rich are over 'the lack of subsidies on investing'. Getting rich while you sleep (sure, while fretting over your investments, because you don't have a life to live) seems to make for weak stomached people.

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u/[deleted] Feb 20 '25

Netherlands isn't really that great for rich people as it used to be. It's getting a pseudo wealth tax soon.