It wouldn't. I read this as "we gotta try something" but let's be honest, no amount of work on incorporation rules or employee options schemes or whatever they make up next, is going to meaningfully change the culture and attitude of European capital markets.

If the EU really wants to light the fire, they should invest all those suddenly available defense euros in European companies only. Keep that going for a decade and there'll be a whole new generation of angel investors and small funds run by recently exited entrepreneurs with a soft spot for proper innovation. The SV VC culture didn't pop into being magically. It happened because a sufficiently large % of VCs had been entrepreneurs in a previous life (and not bankers), and their attitudes rubbed off on the rest.