Comment by bluecalm
10 days ago
>>There isn't enough private capital in the EU with the risk tolerance required to take on such a challenge independently.
That can be improved by making traditional investments (real estate, land) less attractive while making investments into businesses more attractive. You just need to change tax incentives by removing capital gain tax and introducing real estate/land value tax (or raising it). Removing red tape would help as well and then making the common market really common.
As it is there is very little incentive to invest in companies here.
> That can be improved by making traditional investments (real estate, land) less attractive while making investments into businesses more attractive. You just need to change tax incentives by removing capital gain tax and introducing real estate/land value tax (or raising it). Removing red tape would help as well and then making the common market really common.
That's unrealistic. Majority of people in the EU own property and/or land, and no one wants to pay even more taxes on it. In my EU country, the majority of politicians own more than two apartments. I don't see them working against their own interests.
Yes, it's unrealistic because the plan is for people who already own property or land to extract rent from productive class, especially young people.
That's why nothing every changes. Ever increasing taxes on productivity to benefit the real estate/land owners is how EU operates. No wonder we have fewer and fewer children and there isn't many people willing to found new businesses.
It's a death spiral which will end with the youth rebelling or going extinct. The latter being more probable looking at current fertility rates.