There is no European (capital) market and the national markets are too small to compete with the US or China. European companies are therefore unlikely to gain

There is no European (capital) market and the national markets are too small to compete with the US or China. European companies are therefore unlikely to gain trust from investors that they will be able to compete. Hence these kinds of top-down iniatives are in a sense the best they can do given rather poor ircumstances for private investment.