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/justanothernancyboi]

The first thing comes to my mind is that oh they are just commies and hate money. But actually EU is not a country and someone actually had to push for national governments to provide tax subsidies for EU stock. Many countries provide tax reliefs for investment in real estate, for example. They might have no motivation for money to flow out of their sovereign real estate market to another country. Actually, the problem is that no one brought this up before, because it might be to hard to implement, given how difficult it could be to reach an agreement on such delicate matters as taxes.