And a lot of bureaucracy and a complex tax system.

If I wanted to start a business in Europe I'd chose the UK. They are light (for Europe) on regulation and have very simple rules when it comes to running a business according to law. Hell, you can set up your Ltd. in 10 minutes and pay the fees via PayPal.

Try that anywhere in Continental Europe.

(That's also why I don't get all the hype about Berlin. I'm from Germany and Germany is one of the last places where I would start up).