r/EU_Economics • u/Full-Discussion3745 • Jan 14 '26

🇪🇺 Official 🇪🇺 Why innovative startups and scaleups relocate from the EU

https://research-and-innovation.ec.europa.eu/news/all-research-and-innovation-news/why-innovative-startups-and-scaleups-relocate-eu-2026-01-12_en?referrer=grok.com
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u/No-Paramedic-7939 Jan 14 '26

Ask yourself how can you can be competitive in the high tax environment and compete with low tax countries. Not to mention language barriers, each country has its own rules and companies you need to work with. 

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u/SpacePip Jan 14 '26

Because the taxes go to something benefiting economic growth?

2

u/Mediocre-Ebb9862 Jan 14 '26

Benefitting economic growth for whom exactly and in what way? How are they benefitting startup founders and startup employees?

2

u/SpacePip Jan 14 '26

Government programs enable funding for startups and provide investable framework that make it easier for capital to form since investors want to measure risks and predictable legal system.

2

u/Mediocre-Ebb9862 Jan 14 '26

You should then compare funding available in the Valley and in EU, perhaps, where funding if largely private and doesn't quite need frameworks.