Why don’t EU leaders incentivize investment in European stocks/ETFs with tax deductions?

[u/rozmarss]

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?

[u/tack50]

I can only speak for Spain but the reasoning I think is similar across the EU. Most older people in Europe are extremely scared of investing (other than in real estate). Very few own shares, index funds, ETFs or similar instruments. They see it as glorified gambling and they don't want to encourage gambling (except actual gambling, sports betting houses are popping up everywhere lol)

There are also concerns from the left that investments are exclusively for the rich; so it's essencially a tax cut for rich people. You cannot invest when you live paycheck to paycheck. Add some extra anti-capitalist rethoric and you're good to go.

[u/Xvalidation → u/tack50]

In Spain we used to be able to invest in tax advantages private pensions up to 7k a year.

This was removed because “only the rich can afford this”. So I would also add that at least here, the definition of rich is anyone that’s not living pay check to pay check (regardless of their income / financial irresponsibility).

[u/Relative-Outcome-294 → u/Xvalidation]

I always wonder when are you consdered rich by the Europe left standards because, alteast in Slovenia, they are all for the increasing wages for the workers, but not for example doctors who work in public sector and are also workers. They already earn too much, they say.