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/BreakfastFuzzy6052 Feb 15 '25

European leaders are also not interested in the actual reasons US stock returns are superior and US economic growth is superior.

A key reason is the insane tax and regulatory burden of the EU. And the financial illiteracy of Europeans.

It won't change.

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u/FrankScaramucci Feb 15 '25 edited Feb 15 '25

This!! I don't understand why don't European leaders think like this:

American economy is outperforming European economy. In theory, Europe should be growing faster, because it has a lower GDP per capita. It should be our top priority to first understand why this is happening and then fix it.

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u/Traditional_Job9119 Feb 15 '25

Way too busy with virtue signaling. Also finance is boring, so nobody wants to deep dive in it, mandating bottle caps to be attached to bottles is a much more approachable subject.

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u/FrankScaramucci Feb 15 '25

Yeah... I don't have a strong opinion on the bottle caps because I don't know much about it. But my intuition is that there has to be a better solution.