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

[u/paneuropeanism_]

https://streamable.com/4h43qk

[u/AG_GreenZerg]

It is circular though. Great businesses that start in the UK or Europe end up in America for better access to capital. This union will make capital easier to access in Europe so hopefully the next ARM Holdings or other tech or whatever unicorn firm stays in Europe.

[u/Aggressive_Chuck → u/AG_GreenZerg]

It's not just capital, it's easier to grow a business in America.

[u/EmergencyInternal837 → u/Aggressive_Chuck]

This ⬆️
Bureaucracy in europe is discouraging business

[u/Prince_of_DeaTh → u/Aggressive_Chuck]

It’s easier because they have a unified market backed by massive capital. That is literally what this union is trying to replicate.

[u/iYoona → u/Prince_of_DeaTh]

Europe cannot simply redirect €300 billion from U.S. assets into “European equivalents” when in many sectors the equivalent compajny doesn't even exist in the same scale. Who in the EU is competiting with Google, nvidia, microsoft, apple, amazon, or Meta

[u/AG_GreenZerg → u/Aggressive_Chuck]

Why?

[u/Shihai-no-akuma_ → u/AG_GreenZerg]

Should we start with regulations? A company that starts in the EU has to deal with a shitload of regulations that get progressively worse the bigger your company is. On top of corporate taxes, since the EU has a mindset of hating and alienating every investor or businessman.

If you have an idea and money, the US makes it very simple to grow. People there love to consume and buy a product. Over Europe, it’s a much harder sell.

[u/Every_Mobile3968 → u/Shihai-no-akuma_]

The thing is not a cluster of EU regulations but that you have to deal with regulations of EACH member state separately.

[u/AG_GreenZerg → u/Shihai-no-akuma_]

What are the top 3 EU regulations you think that should be removed?

[u/Shihai-no-akuma_ → u/AG_GreenZerg]

Removed? Not entirely, but substantially changed. PPWR would be a start. Goes about it the wrong way, by segregating the market into 27 individual licenses and legal representations. That's absurd for a Union.

[u/keralaindia → u/AG_GreenZerg]

Oooooh i want to play as an Indian american venture cap, i work for one of the biggest VC firms in the US

EU AI act

GDPR and DSF

Main one being completely fragmented national financial frameworks, number ONE reason companies leave

[u/alexandicity → u/AG_GreenZerg]

AML rules could chill out a bit. Yes, I might be a bit sour on this as our startup constantly has its bank account frozen for no good reason...

[u/Foreign-Engine8678 → u/Shihai-no-akuma_]

Don't remember exact license, but to send books to Europe you have to buy a license for it. Each license is around 5k. 1 license per country. Do you think normal person can buy 27 5k licenses to send books to Europe? And that's just one example

Ps: number might be different as it is basically my hearsay. Principal still stands: you don't deal with EU when you work with EU. You deal with each country separately for one EU regulation. Regulations are made with good purposes, but taken to EU extreme they become a blocker and monopoly makers

[u/blixt141 → u/Shihai-no-akuma_]

And this is why rivers are poisoned, wells run dry, there are cancer clusters and illegal generators power Data Centers. The US is now a shithole country because of the lack of regulations and enforcement.

[u/Shihai-no-akuma_ → u/blixt141]

I am not talking about safety regulations. Those should be the bare minimum across the EU (although cancer rates keep going up in Europe regardless). I am talking about everything else that's just a total mess to deal with.

I mean, look at PPWR. It's a nightmare for smaller companies, dictating a minimum of 30k a year just to ship INSIDE the EU to all 27 member states. Not only it goes against the single market, it's totally insane. Then you gotta get licenses for each particular country, which is another 2-5k. The idea behind it? It's fair. But the applicatio and complexity? Totally crazy man.

[u/CuntWeasel → u/blixt141]

The US is now a shithole country

Blanket statement, infantile take, and it all depends on how you define a "shithole country".

I know it goes against the /r/europe hivemind, but the poorest state in the US (Mississippi) has a higher GDP per capita than France.

The New York state has a GDP per capita that's double that of Germany.

[u/blixt141 → u/CuntWeasel]

Cope. The US has burned every bridge and spurned every ally because of the Orange Shit Gibbon. Police kill at will and GOP steals at will. Democracy does not exist because of this. Go read instead of watching Faux NEWZ. And I forgot $40T in debt. This is all gop.

[u/blixt141 → u/CuntWeasel]

https://www.irishstar.com/news/politics/bitter-trump-razes-40-weeping-37615956

[u/CuntWeasel → u/blixt141]

That's the definition of a shithole in your mind?

A crazy manchild razing 40 weeping willows? What about decades of civil war and ethnic cleansing like they do in many parts of Africa? What about people shitting in the streets and having no running water like they do in many other parts of the world?

It's not apples to apples no matter how anti-American you might be.

[u/Appropriate-Bird-354 → u/AG_GreenZerg]

Great businesses that start in the UK or Europe end up in America for better access to capital.

1. This doesn't really address any of the reasons capital is easier to access in the US.

2. It has just as much if not more to do with access to a large, extremely wealthy population with a lot more disposable income than Europeans in a single market.

[u/Willing_Cause_7461 → u/AG_GreenZerg]

Great businesses that start in the UK or Europe end up in America for better access to capital.

Or in some cases can't even start at all so go to America.

Stripe is the Irish example of this happening. There wasn't the investment environment that would allow it to thrive. They knew that so went to America instead.