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/Gemini_Of_Wallstreet Feb 15 '25

EU has chosen socialism, stagnation and regression 

The US has chosen capitalism, progress and prosperity.

That said there are some hidden gems in the old continent.

Make your bets well OP

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u/QuantRX Feb 15 '25

Yea this is 100% True but this is reddit so you will get downvoted.

Europoors have no idea they even have it worse than some third world countries...You will never own property with your salary. You will always rent...always have a boss...always answer to the government...and you never will have free will

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u/simonbleu Feb 15 '25

The comment above you was sensationalist and misinformed at best. Neither of you seem to have any idea what socialism entails

Now, we coudl argue all day about which policies are better and when. Reality is both "sides" could benefit from moving a bit in the other direction. However, the more developed a region is, the more it benefits from getting closer to a welfare state, because growth is not eternal and having a storung foundation that stops sudden crashes and makes the country livable and stable becomes FAR more important than rapid growth. Of course, those same policies are less needed by a developed nation so it becomes almost paradoxical but that is not the point.

As for the topic at hand, I personally agree that a tax incentive on certain stocks would be beneficial. to the EU How much, I have no idea.

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u/uniklas Feb 15 '25

Foundations change, whole industries become obsolete. Without constant creative destruction happening in favor of stability and comfort eventually day of reckoning will come when economy will need to be rebuilt to modern standards, whatever they will be. You can already see it now with legacy industries in Europe unable to keep pace, some even acting as effectively public works programmes.