[noodlesUK]

I think European countries need to get serious about investing money locally. The UK is a particularly egregious example but it’s taking begging and pleading with the mansion house accord to even convince pensions to try to invest in the UK economy. Every country should make a portion of local (at least within Europe) investment a prerequisite for whatever favourable tax treatment pensions and similar products get.

So much wealth is tied up in pensions and it’s folly to let it all go to supporting the U.S. and eschew local investment altogether.

[OtherShrezzing]

I partially agree, but if my private pension needed to invest into the underperforming FTSE250 by law, I’d just opt out of that system and put my savings into a US/Emerging-markets index myself.

I’m not patriotic enough to spaff my compound interest opportunity on a bunch of dying tobacco, oil, & mineral extraction companies to put any of it to work in the FTSE250.

[noodlesUK]

I don’t think it needs to be the FTSE and I don’t think it even needs to be all that much in UK funds but if you look at the default allocations of many large pensions it’s single digit UK equity exposure which I think isn’t really acceptable.

[dijit]

A lot of those investments are self-fulfilling though.

[xyzsparetimexyz]

I don't think regular people should have a say where their pensions are invested. It should automatically be in what's best long term for the country they live in.

[endymi0n]

Kids and their wellbeing and education might be a good start…

[bogdan]

We are talking about private pensions, right?

[xyzsparetimexyz]

I don't think private pensions should exist.

[nradov]

Requiring local investing by pension funds would be rather like pushing on a rope. Until more European countries get serious about a growth agenda and reducing government interference in free markets there won't be many good investment opportunities.

[sublimefire]

Everyone is serious about it but the problem lies in capital markets and investment funds and the fact that Europe is not a single country (multiple languages, slight difference in some laws). Banks tend to be too conservative and local investment vehicles are much smaller compared to what you can get in US. You are pretty much free to do anything you want otherwise, eg recent defense startups. What is more ageing population does not help and puts “a bit” of strain on the taxation.

[petra]

Does the EU has an index that is competitive with the SP500 over the long term?