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/FeineSahne6Zylinder 12h ago

No. My money is leaving because I want returns that I can’t get from European boomer companies.

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u/KTMee 12h ago edited 11h ago

This, investing is cold math. If Europe wants that money it should create conditions for our Nvidia, Apple and similar global sucesses.

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u/Nyctas Transylvania 12h ago

Conditions like having joint capital market that can actually fund them? 🤔

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u/Kupo_Master 7h ago

Conditions like less overbearing regulations and social protections. Creating a start/up in Europe is 3x harder than in the US.

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u/Most-Round-4132 8h ago

No like less restrictive regulations and less capital needed to start up

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u/MoffKalast Slovenia 9h ago

Well it is a bit unclear why there aren't any VCs here, I'm sure the answer involves 500 pages of loss generating bureaucracy and liability. One could argue there's much less centralized wealth here as LPs but one look at Monaco should be indicative that there's enough for at least a handful.

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u/FiatIsAScam 9h ago

yeah, europeans can invest in US easily, but somehow can't invest in the EU? Please tell me how it is harder to buy a UE stock than an american one?

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u/CuriousButNotJewish 4h ago

Like no capital gains tax.

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u/r_Yellow01 Europe 12h ago

The magic word is scale or scalability

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u/SimpleMoonFarmer 11h ago

The magic word is freedom. That's why Silicon Valley took over Boston.

EU bureaucrats cannot comprehend the value of freedom.

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u/GGBeavis 12h ago

This is precisely what they’re doing with this measure tho? If investing in EU companies is easier / beneficial for EU citizens, then more money flows into EU companies

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u/Aggressive_Chuck 11h ago

It won't make it easier to scale businesses in Europe. Not with things like the new packaging law.

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u/GGBeavis 11h ago

That’s a different problem. There are multiple problems that cause EU companies to stagnate / move to the US. Access to funds is one of them, and this proposal is a big step towards addressing it.

It’s a win that should be celebrated. Doesn’t mean the job’s done.

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u/buzziebee 11h ago

Yeah this access to funding issue is a piece of the puzzle. There's also parallel work being done to unify the business registration side of things which is beginning to be worked on with EU Inc. but it needs some more work.

This is big and complex work. It's going to take some time to get it all set up and working right. The fact that each piece of the puzzle isn't quite perfect or that the whole system isn't ideal yet isn't a reason to keep working on it and moving towards that end goal.

If those billions were invested in EU companies then there would be more investment and growth in EU companies. It's a good idea and I'm glad it's being worked on. It will take time, but we shouldn't let perfect be the enemy of the good.

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u/Kupo_Master 7h ago

Frankly in my experience, access to funding has never been the key limiting factors. Labour laws, taxes and bureaucracy are what most European entrepreneurs face as key hurdle. And the 2 problems are linked; capital wants to support growth investments not regulatory bureaucracy and employers’ share of taxes on salaries.

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u/icebraining 10h ago

The new packaging law will establish uniform rules across all member states, of course it makes it easier to scale.

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u/Prince_of_DeaTh Lithuania 8h ago

Yes, because what really stopped Europe from building our own OpenAI or Nvidia was packaging regulations, not a massive late-stage venture capital shortage.

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u/Prince_of_DeaTh Lithuania 8h ago

Congratulations, you just discovered why the Capital Markets Union exists. Fixing market fragmentation is how you create the financial conditions for trillion-dollar tech giants to grow here instead of fleeing to NASDAQ.

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u/Prince_of_DeaTh Lithuania 8h ago

That €300B isn't your personal portfolio. European markets lack high-growth stocks precisely because fragmented capital forces our best tech companies to go list on Wall Street.