The return on investment in the US is far greater than in Europe. US corporations and investors are taxed less than in Europe, and there are far fewer regulations. As a result, investment in US tech is far greater. We also attract the best tech workers from other countries.
Strong points. I think another issue here is capital markets. The US simply has a much larger and centralized capital market, which means there is more money to throw around to help startups grow quickly.
Peder, that's a great point. The U.S. capital markets being so big and connected really helps startups get money to grow fast, which then boosts new ideas and helps them compete globally. I'm curious to see if EU plans like the Banking Union or the Savings & Investments Union can help Europe catch up and make it easier to invest there too. How Europe's money scene changes will surely have a big say in how tech grows and how currencies move around the world. Thanks for making this such a smart talk!
Peder, excellent explanation of the situation with the Euro. I think it will be very interesting to see how this fits within the EU's broader approach to competitiveness, especially the Savings & Investments Union and the Banking Union. How do you see this evolving?
Thanks for your comment Eduardo. I think in the short-term, the strengthening of the euro is a big problem for Europe. Industry (especially auto) is already facing higher tariffs when exporting to the US, and a stronger euro acts like an additional tariff. That said, with increasing political instability in the US (see government shutdown today) and large investments into defense, if Europe positions itself well as a viable alternative to the dollar, there could be real long term benefits.
The return on investment in the US is far greater than in Europe. US corporations and investors are taxed less than in Europe, and there are far fewer regulations. As a result, investment in US tech is far greater. We also attract the best tech workers from other countries.
Strong points. I think another issue here is capital markets. The US simply has a much larger and centralized capital market, which means there is more money to throw around to help startups grow quickly.
Peder, that's a great point. The U.S. capital markets being so big and connected really helps startups get money to grow fast, which then boosts new ideas and helps them compete globally. I'm curious to see if EU plans like the Banking Union or the Savings & Investments Union can help Europe catch up and make it easier to invest there too. How Europe's money scene changes will surely have a big say in how tech grows and how currencies move around the world. Thanks for making this such a smart talk!
Peder, excellent explanation of the situation with the Euro. I think it will be very interesting to see how this fits within the EU's broader approach to competitiveness, especially the Savings & Investments Union and the Banking Union. How do you see this evolving?
Thanks for your comment Eduardo. I think in the short-term, the strengthening of the euro is a big problem for Europe. Industry (especially auto) is already facing higher tariffs when exporting to the US, and a stronger euro acts like an additional tariff. That said, with increasing political instability in the US (see government shutdown today) and large investments into defense, if Europe positions itself well as a viable alternative to the dollar, there could be real long term benefits.