The EU elite believes that Europe's lack of innovation and new emerging companies is caused by a lack of 'risk-willing capital'. But they avoid to ask the more important question: Why is there so little risk-willing capital willing to invest in European companies in the first place? That question is much more uncomfortable. Capital goes where the expected return on taking risk is attractive. If entrepreneurs and investors face growing bureaucracy, regulation, taxation and increasingly anti-business rules, fewer companies will be started, fewer will scale in Europe, and less capital will be willing to finance them. The lack of capital is not the root problem. It is a symptom. Europe does not primarily need politicians to find more capital for European companies. It needs to make Europe a place where entrepreneurs want to build companies and investors are willing to risk their capital. Fix the incentives, and the capital will follow.