r/europe • u/paneuropeanism_ Europe • 13h ago

News Von der Leyen: €300 billion in European savings flown overseas every year, primarily to the US, will be invested in Europe from now on. All 27 EU states agreed to establish the S&I Union, a step toward the full Capital Market Union

https://streamable.com/4h43qk
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u/Ynneb82 Italy 13h ago

Hell yeah. But one thing is saying it the other is doing it. People invest in the USA because it's the strongest market in the world... If EU economy is bad, why should people invest here?

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u/Ruma-park 12h ago

Regulations. You make it more attractive to invest in European stocks.

Also the US being the strongest market is a self reinforcing state, which this savings union is trying to break.

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u/Key-Speaker007 12h ago

Regulations and taxes are the only two words they know.

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u/Ruma-park 12h ago

401ks are also regulated in a way to incentivise US stocks...

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u/Worth_Temperature_42 4h ago

Explain yourself? I'm asking you that because I think you are lying but maybe, maybe I'm wrong lol

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u/just_that_michal 8h ago

That is kinda the enire point of government lol

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u/Key-Speaker007 7h ago

Haha, true. But that's only one side. The other side is to provide services to its citizens and build economical and political environment that support fast development and prosperity. Regulations should not become cuffs.

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u/landismo 1h ago

Ehhhh no. That's the point of a socialist government.

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u/Navodar94 12h ago

Would really love it to be like that, instead they'll probably find a way to forbid you from investing in the US instead of making EU investing more attractive.

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u/Ruma-park 12h ago

I think more alongside of 401ks in the USA. You will get incentives to save longterm in the EU with tax rebates.

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u/Appropriate-Bird-354 2h ago

Regulations

Moreso elimination and harmonization of regulations. That's **PART of how you make it more attractive to invest in European stocks.

Also the US being the strongest market is a self reinforcing state, which this savings union is trying to break.

I would hope not. Economic regulation designed to break another economy isn't a great recipe for success.

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u/Ruma-park 2h ago

It's not about destroying another economy, it's about breaking the self reinforcement effect, which isn't great for the US, but great for Europe and this being a European policy...makes sense.

EU isn't ruled by Trump, who's modus operandi is in fact destroying other economies.

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u/Appropriate-Bird-354 1h ago

What do you think the self reinforcement effect is?

EU isn't ruled by Trump, who's modus operandi is in fact destroying other economies.

The EU has spent decades abusing non-tariff barriers to trade to weaponize regulation and trade policy to advantage EU corporations at the expense of American ones and EU consumers contrary to international law. Trump may be a POS mron, but trade conflict with Europe was inevitable and EU-driven.

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u/Ruma-park 1h ago

You must be drinking the Koolaid, holy hell.

A trade conflict was not inevitable and quite frankly until 2016 i.e. Trump 1, there were only discussions about MORE trade and MORE unity.

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u/Appropriate-Bird-354 1h ago

You must be drinking the Koolaid, holy hell.

Sorry, I'm just very well informed. If you think this is about koolaid or nationalism, that's a reflection of your own warped understanding.

A trade conflict was not inevitable

It absolutely was. It's been a pretty one-sided war for decades now.

there were only discussions about MORE trade and MORE unity.

IF the EU dropped it's one-sided trade conflict, which it didn't and hasn't and won't.

Which to be fair, IS the right way to do it. The US doesn't win with Trump prosecuting a trade war. It would do better for all parties trying to create better, shared trade practices with the EU. But the EU doesn't and hasn't wanted that, it's a relatively protectionist economy and now Trump is karma. He does what the EU does without any of the pretense.

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u/Nigerianpoopslayer 12h ago

…Do you not realize that your point is a self fulfilling prophecy. The US is strong due to investments. If you invest more in Europe, the market gets stronger. Nothing changes without making changes, thats why.

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u/Ynneb82 Italy 12h ago

I do, but let's be real, people will invest where it's more convenient. If you have 100€ of saving you want the max yeald you could get.

What I hope the eu is meaning is that they will make the market more attractive so we won't feel bad about investing here.

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u/Nyoka_ya_Mpembe 12h ago

Is EU economy bad?

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u/Ynneb82 Italy 12h ago

It's worse than USA for sure.

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u/Sea_Produce_4801 1h ago

But everyone has healthcare and there’s no president manipulating the market.
I invest in both and have started to become sceptical of the US market

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u/Nyoka_ya_Mpembe 12h ago

Yet somehow I'd rather live in EU than US

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u/Ynneb82 Italy 12h ago

No doubt on that :)

But as an investor I'd rather invest in american stock because they perform better. So EU has to give us a reason to invest in EU stock because we won't do it just out of the pureness of our hearts.

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u/Every_Mobile3968 10h ago

In US tech*

1

u/olluz 12h ago

Isn‘t this an important step to strengthen the European market?

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u/octotent 11h ago

Sure, but investing in higher ROI is an important step to strengthen my bank account.