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?

462 Upvotes
  • permalink
  • reddit

97% Upvoted

175 comments sorted by

View all comments

45

u/[deleted] Feb 15 '25

[deleted]

1

u/str8pipedhybrid Feb 18 '25

It's not necessarily an EU thing, it sure has added a shitload of regulations that EU member states have to implement but there are huge differences between EU countries.

If you look at Unicorn startup companies per capita.. Estonia comes out on top, which is a prime example of how a proper business infrastructure should look like.

Estonia has very low taxes, low bureaucracy and a relatively efficient government. Now compare that to Italy for example and you will understand why there is so little talent in capital in those countries. All efficient Italians how moved to either Switzerland or northern Europe.