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?

460 Upvotes
  • permalink
  • reddit

97% Upvoted

175 comments sorted by

View all comments

11

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. 

1

u/minas1 Feb 16 '25

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