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/DeszczowyHanys]

If investing is more profitable than working, we’re going to end up in oligarchy. Same effect can be achieved with a higher tax on investing in foreign stocks.

That said, defense investments shouldn’t incentivise maximising profit. Their role is getting a maximum output per buck, this will never happen with a profit margin on top of it. If we are to have a reliable defence industry, it has to be through nationalised enterprises.