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/Maleficent-Bus-7924 13h ago

Better returns

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u/iwantpizzaandyou 12h ago

I mean, of course when you invest so much money in the US they will grow more and have better returns. The EU companies are starved of capital and this is one of the biggest barriers to being successful in the EU, meanwhile all the European investments go to the USA…

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u/Maleficent-Bus-7924 12h ago

It would be misleading to claim that it’s just because of capital availability. Lower cost of doing business and more lax regulations definitely play a role too.

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u/iwantpizzaandyou 11h ago

Well, thank god I didn’t claim it then. But I guess the Redditor mind cannot comprehend addressing one of several important things, or things having nuance at all. All that’s important is to sound smart and get upvotes.

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u/Ok-Style-9734 12h ago

Which EU company is there to rival Google, Apple, nvidia or meta? 

You could force every penny of EU investment to put put into EU stocks and youd just end up inflating oil and financial companies what multi billion user company is there here?

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u/iwantpizzaandyou 11h ago

I didn’t know the entire world revolves around 5 tech companies. Thank you for your deep insight.

And the EU has many, many companies with no competitors anywhere, which the US and China depend on. As an entirety, our companies’ net worth isn’t so crazily behind the USA and having it not depend on 5 companies is actually great. And we aren’t talking only about digital tech and ASML here. Go and read a bit more about it.

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u/Ok-Style-9734 11h ago

It really does though those 5 companies account for about 20-30% of the total stock market returns.

" And the EU has many, many companies with no competitors anywhere, which the US and China depend on. As an entirety, our companies’ net worth isn’t so crazily behind the USA and having it not depend on 5 companies is actually great. And we aren’t talking only about digital tech and ASML here. Go and read a bit more about it."

And thats lovley and 10k in the snp 500 20 years ago would have you on about 90k now same in stoxx600 35k

" As an entirety, our companies’ net worth isn’t so crazily behind the USA"

It is massively behind, on the all world index the USA makes up around 60-70% of the total market cap.

For people's pensions returns matter more than nationalism 

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u/iwantpizzaandyou 11h ago

And, again, one of the main reasons EU companies don’t perform as well is the lack of capital. And the capital that is there in the EU goes to the US instead. The are trying to solve this ridiculous situation. I think you are forgetting what the discussion is even about while farming Reddit karma or LARPing as a financial expert or honestly idk what.

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u/Ok-Style-9734 10h ago

"And, again, one of the main reasons EU companies don’t perform as well is the lack of capital

And lack of a product. This entire 300bn being talked about is less than what google made in profit last year. It's not some how making trillion euro companies.

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u/iwantpizzaandyou 9h ago

Yes, European companies don’t make any product, that’s right…

I would personally be curious to know how much Google Europe made, which is a European company so that Google can evade American taxes. Not even the American companies are American in their entirety and Europe is very important for them both as a market and as a location for RnD etc. Even Apple has chip design teams in Munich, Germany…

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u/Ok-Style-9734 8h ago

" Yes, European companies don’t make any product, that’s right…"

A european company with a competitive product vs microsoft, apple, google or meta?

Sure you tell me what that company is I'll buy it and retire in a decade.  

What is it?

" I would personally be curious to know how much Google Europe made, which is a European company so that Google can evade American taxes. Not even the American companies are American in their entirety and Europe is very important for them both as a market and as a location for RnD etc. Even Apple has chip design teams in Munich, Germany…"

Not looking good that american subsidiaries are the example is it.

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u/iwantpizzaandyou 7h ago

Without some European companies, none of those tech companies would exist. You don’t need a competitive product in every single segment possible, you can also import.

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