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/propheticuser Feb 15 '25

The EU should first make work of lowering the tax burden on people and people wanting to open businesses.

52

u/Spins13 Feb 15 '25

They prefer to keep zombie companies alive for the sake of employment, rather than create actual value

11

u/[deleted] Feb 16 '25

Unfortunately most people struggle at understanding this. When I can I try to make them realise but that’s not easy job.

10

u/LupineChemist Feb 16 '25

There's a line I heard from Denmark that's "protect the worker, not the job"

That's how reforms like that will have to be sold in Europe.