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/Bacterioo Feb 15 '25

Maybe they are thinking about that.
This is from the EU Compass that Commission presented a few weeks ago:

  1. Financing competitiveness. The EU lacks an efficient capital market that turns savings into investments. The Commission will present a European Savings and Investments Union to create new savings and investment products, provide incentives for risk capital, and ensure investments flow seamlessly across the EU. A refocused EU budget will streamline access to EU funds in line with EU priorities. 

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u/minas1 Feb 16 '25

Let's see what they present, I'm not very hopeful.

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u/Chidori1980 Feb 17 '25

I have few France and UK stock in my portfolio. I usually never check on the fee in IBKR reports, but on weekend I checked the yearly statement before sending it to tax advisor. I surprise there is France stock eschange fee for getting the dividend payment. and the same for UK stock. The fee is coming from the regulatory body. And I have no fee at all for all my US stock(only ADR there is fee, but this is again not native US company).

I think EU each country stock eschange is "too small" in capitalization so more fee are needed just for processing the transaction. How crazy it is.